[2007-08-08]  Lion Ore No More
Lionore Mining International is expected to de-list from Botswana Stock Exchange (BSE) following successful acquisition of its assets and outstanding shares by the Russian Norilsk Nickel.

Lionore's Group Chief Operating Officer, Peter Breese, said Lionore is expected to de-list from the BSE and the Toronto Stock Exchange (TSX) on the 12th of August this year.


Breese said: "We have to evaluate options for Norilsk Nickel to list or not to list in a couple of months. Lionore is no more, because Norilsk Nickel has taken over all of Lionore's outstanding shares and assets at a US$ 6,8 billion transaction. The acquisition was made because Botswana is a real growth country and Norilsk Nickel is really proud to be a partner in Botswana."

He said the US$620 million growth projects, such as the Activox project at Tati Nickel mine and Botswana Metal Refinery (BMR), are continuing as planned.

"Botswana is open to business and we have never seen a government that works as fast as that. The future potential of Botswana nickel industry is exciting. We must assure shareholders that Norilsk's powerful resources will help realise Botswana's full nickel potential. Norilsk is committed to continuing Lionore's active participation in the nickel industry," he said.

Breese said since the Activox refinery now belongs to Norilsk Nickel, they are planning to make it the world's number one refinery. He said Norilsk Nickel owns 85 percent of the Activox Refinery and the BMR owns 15 percent.

"The US$482 million capital project shall be housed by the BMR. Botswana has been chosen for the commercial plant due to Tati Nickel resources; government 'open for business' attitude and skills that Batswana possesses. The plant is a training ground for employees. We have given Batswana the skills that Russians want," said Breese.

He indicated that the project site clearance and earthworks for the construction of the Activox, which is 1 kilometer squared, are well under way, and is expected to commence next week. Construction of the power line and water pipeline has commenced. The 70 megawatts of power shall be used for the Activox project, which is a third of Botswana's power needs. The Activox site has about 469 people on site, 90 percent of which are locals. The number is expected to increase to 3000 during 2008," he said.

Annual nickel production, Breese said, is expected to double at Tati Nickel mine from 11 360 tonnes to 22 458 tonnes, extending the mine life to 2016. But he was confident that the Selkirk ore at Phoenix mine, is likely to increase the mine life to the year 2030.

Meanwhile, Norilsk Nickel is the leading Russian miner with global presence and about 85 000 employees. It is the largest nickel producer and has an international nickel business production of 80 000 tonnes. Norilsk Nickel is recognised as the Russian leader in corporate governance and transparency; has the highest credit ratings among Russian privately owned companies and it is financially globally competitive compared to the majors.

Copyright © 2007
Source: Copyright © 2007 The Voice.