Blackstone Group Inc., one of the world’s largest investment companies, has reportedly secured an option to acquire a major nickel asset located in the northwest of Australia. According to reports, the asset in question is owned by the Canadian-based nickel company, New Century Resources Ltd.
The potential acquisition is estimated to be valued at as much as $1 billion, and may extend Blackstone’s control over the global nickel market. Blackstone is already the largest owner and manager of nickel assets in the world, with a significant investment portfolio consisting of projects located throughout the world.
This latest move would add the nickel asset located in the northwest of Australia to Blackstone’s global portfolio. The project reportedly contains over 30 million tonnes of nickel ore, with an estimated 18 percent grade of metal. As a result, the acquisition has the potential to significantly increase Blackstone’s global nickel production.
While the finer details of the deal have yet to be disclosed, it has been reported that Blackstone has secured the option to acquire the nickel asset from New Century Resources Ltd. over the course of the next six months. Should the agreement go through, Blackstone would open up a number of open-pit mining operations at the asset and construct a new ore processing plant.
This major move is expected to help Blackstone remain a major force in the nickel market. As such, it will be interesting to see how this plays out over the coming weeks and months.