Australia's Kagara gives Lounge Lizard nickel mine the heave-ho
Australian copper and zinc miner Kagara Ltd. (ASX:KZL) is selling its Lounge Lizard nickel mine.
"Kagara and its adviser Goldman Sachs & Partners Australia have commenced discussions with potential purchasers of Kagara’s nickel assets. Kagara expects to finalise the sale process during the first quarter of 2012," Kagara said in a statement on Monday.
Reuters reported that Kagara's mining partner, Western Areas, is not interested.
The deposit is mined and processed by Western Areas and the ore is sold to BHP Billiton and Jinchuan Group.
Nickel has been one of the metals hardest hit by the current downturn. The price has slumped about a third since February 2011, when it traded just north of $13 a pound, down to about $9 a pound currently.