Outokumpu sells royalty rights of Forrestania nickel project

Finland-based stainless steelmaker Outokumpu has announced that it has sold its royalty rights regarding the Forrestania nickel project in Western Australia to the Australian company Western Areas NL for $30 million.
 
Western Areas will make the payment in two installments, with $15 million payable this month and $15 million due 12 months later. Accordingly, Western Areas will be exempt from any royalty payments relating to mining operations in the Forrestania region. Western Areas paid $8.8 million to Outokumpu in the 2010-11 financial year.
 
As a result of the transaction, non-recurring operating income of approximately $30 million will reflect on the operating results of fourth quarter 2011.