Reuters reported that Panoramic Resources has assembled a M&A team to evaluate the Australian nickel assets of Russian metals giant Norilsk.

Norilsk is reviewing its nickel holdings in Australia, which were idled in 2008 and 2009 due to weak demand for the steel making metal additive and potentially account for about 10,000 tonnes of annual production.

Mr Peter Harold MD of Panoramic said that "If they decide to put those assets up for sale we would certainly be interested. We've put together a mergers and acquisitions team. With what we've got now, we could probably take production up to around 22,000 tonnes a year, but that's the maximum."

Panoramic, Australia's third largest nickel miner is limited in growth from its existing mines in west Australia's Kambalda and Kimberley nickel belts, which yielded 17,500 tonnes of nickel in fiscal 2009.

Norilsk purchased the mines in 2007 when nickel prices soared above USD 50,000 a tonne on high demand. Over the next two years, Norilsk shut the mines down as global commodities markets collapsed and nickel plunged below USD 9,000 a tonne.

Fellow Australian nickel miner Independence Group also has been mentioned as a possible suitor.

Mr Harold said that Panoramic would exclude Norilsk's Cawse nickel operation from any future purchase, due to a reliance on alternative laterite ores to the more conventional sulphide ores the company already mines.

Canada's First Quantum Minerals is in the process of revamping Ravensthorpe to operate at a lower designed production rate.

(Sourced from www.reuters.com)