Norilsk extends Aussie losses
Russian mining giant Norilsk Nickel has extended its run of losses in Australia, with its major local operating subsidiary booking an after-tax loss of $69.2 million last calendar year.
According to its 2012 annual financial statement, lodged with the Australian Securities and Investments Commission this week, Norilsk subsidiary Lake Johnston Pty Ltd has now accumulated losses of more that $171 million. The subsidiary operated the Maggie Hays nickel mine, west of Norseman, until its closure in April.
Lake Johnston lost $26 million in 2011, which included about half a year of contributions from its namesake nickel operation after it resumed production.
In its accounts for 2012, Lake Johnston recorded impairment provisions of $27.9 million and net cash outflows of $21.5 million on its operations. It also still owed its Russian parents more than $158 million. At December 31, Lake Johnston owed trade creditors $27.7 million.
Lake Johnston officially mothballed Maggie Hays and its associated processing in April.
It is understood Norilsk is still seeking buyers for its Australian assets, including Lake Johnston, Black Swan and Cawse, as well as for the big but undeveloped Honeymoon Well deposit.
The Russian company is also in dispute with mining services company Inter Mining, part-owned by Norilsk and supposedly responsible for managing Lake Johnston's mining and equipment hire contracts, though its role within Norilsk had been questioned by former staff and management.
In May the mysterious contractor lodged a bid in the Federal Court to wind up Lake Johnston, alleging the Norilsk subsidiary had failed to pay a $1.8 million bill.
Norilsk became an overnight key player in WA's nickel scene through its top-of-the-cycle $7 billion takeover of LionOre Mining International in early 2007.
