Samsung in talks to mine nickel in Australia

November 25, 2011 | 14:06

(0) user say

South Korean multinational Samsung Corp. is in talks with Australian resource group Metals X to fund and develop a huge nickel deposit, the miner said on Friday.

Metals X believes the Wingellina project in the Western Australian desert could produce 40,000 tonnes of nickel and 3,000 tonnes of cobalt metal annually for an estimated 39 years.

"Metals X confirms that we have held discussions with many international entities including the Samsung C&T Corporation," the company said in a statement referring to Samsung's construction unit.

"All discussions are at a preliminary stage and we have not received any formal proposals."

Nickel is used in everything from magnets to rechargeable batteries and electric guitar strings while cobalt is found in paints and varnishes, among other things.

Dow Jones Newswires said it was a Aus$2.23 billion ($2.17 billion) project but the company would not confirm this.

"We are putting every effort into moving this forward," a Metals X spokesman told AFP. "But it's still early and we are talking to a number of people and not just Samsung."

Samsung is involved in everything from consumer electronics to shipbuilding and retail.

A source told Dow Jones Newswires the talks involve Samsung Group taking equity in the Wingellina project and Samsung C&T securing the contract to design and build the mine.

AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional