8th Feb 2023 13:43
(Alliance News) - Anglo American PLC on Wednesday said it has agreed to acquire a 9.9% stake in Canada Nickel Co Inc, which owns the Crawford nickel project in Ontario, Canada.
Anglo American is a London-based, globally-focused mining company with a portfolio that spans materials including diamonds, platinum, copper and iron ore.
The investment is part of Anglo's plan to expand its nickel product offering, with additional battery-grade nickel for use in electric vehicles.
Under the terms of the agreement, whose financial details weren't disclosed, Anglo has the exclusive right to purchase 10% of nickel concentrate recoveries, iron and chromium contained in the magnetite concentrates, and any corresponding carbon credits from the project.
For its part, Anglo American has committed to providing technological expertise to Canada Nickel.
It will supply its FutureSmart Mining technologies to ore samples from Canada Nickel, in order to identify opportunities to improve processing recoveries and reduce the project's overall energy, emission and water footprint.
"Our in-depth product knowledge and portfolio of innovative technologies have the potential to provide a value-enhancing contribution to the development of the Crawford project, with the objective of unlocking additional supply of nickel to meet the world's growing demand for battery technology for electric transport," said Peter Whitcutt, chief executive officer of Anglo American's Marketing business, which does Anglo's commodities trading.
The completion of the private placement is subject to customary closing conditions, and is targeted to close on or about February 28.
Anglo American shares were trading 0.6% lower at 3,364.50 pence each in London on Wednesday afternoon.
By Holly Beveridge; Alliance News reporter
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