17 August 2003 15:07
RUSSIA: NORILSK NICKEL BESTS COMPETITORS IN AUCTION
Mining powerhouse Norilsk Nickel outbid its rivals in a 6 August auction to privatize the state's 38 percent
stake in the Matrosov Gold Mine, ABN reported the same day. The winning bid of 1.033 billion rubles ($34 million) was
12.5 times the opening price of 81.483 million rubles, providing a rare display of fiercely competitive bidding at a
privatization auction. (Two previous privatization auctions -- for oil company Slavneft and insurer Rosgosstrakh --
produced lackluster bidding and lively allegations of collusion.) The struggle for the Matrosov Gold Mine unfolded
between Norilsk Nickel and an alliance of Russia's Susumanzoloto and Britain's Peter Hambro Mining.
Matrosov's chief asset is its license to the Natalkin gold field, which some believe could hold up to 800 tons of
gold, Rosbalt reported on 6 August. Norilsk Nickel Deputy Chairman Maksim Finskii told "Vedomosti" on 7
August, "Thirty-four million dollars is a good price. We feel that Natalkin's reserves have been
underestimated." Norilsk Nickel now plans to increase its ownership of Matrosov to 100 percent. Unconfirmed reports
indicate that Norilsk Nickel had already bought up 25-30 percent of the mine's shares before the auction,
"Vremya novostei" reported on 7 August. The Matrosov acquisition fits in with Norilsk Nickel's plans to
up its gold interests and diversify its production to reduce the company's vulnerability to fluctuations on world
metals markets. DK Copyright (c) 2003. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty
[AIW [Asia Africa Intelligence Wire]] |
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