First Quantum Minerals has entered into a binding agreement to sell a 30% equity interest in the Ravensthorpe Nickel Operation in Western Australia to POSCO, a steel producer. The transaction is valued at US$240 million, which will be used to reduce the company's debt. First Quantum will retain a 70% interest in Ravensthorpe and continue to be the operator. 

As part of the transaction, POSCO will be provided with a long-term offtake agreement for 7,500 tonnes of nickel in mixed nickel-cobalt hydroxide precipitate (MHP) per year produced at Ravensthorpe, beginning in 2024. The balance of Ravensthorpe’s production will continue to be marketed by First Quantum. The transaction is expected to close sometime in the third quarter of 2021. In addition, POSCO and First Quantum have entered into a Memorandum of Understanding (MoU) to explore a partnership to produce battery cathode precursor materials, likely in the form of nickel sulfate. 

Standard Chartered Bank served as financial advisor and MinterEllison served as legal advisor to First Quantum Minerals for the purpose of the Transaction.