NICKEL: Glencore, Barrick to unload Kabanga project

TANZANIA – According to reports appearing in both the Wall Street Journal and Metal Bulletin, partners Barrick Gold (50%) and Glencore (50%) are hoping to sell their Kabanga nickel exploration project. The project is at the feasibility stage.

Soft nickel prices certainly played a large part in the decision, but both companies have other concerns as well. Barrick is divesting non-core assets in order to slash its debt by US$3 billion this year. Glencore is wary of greenfield projects because of the high initial capital costs.

Barrick (Barrick.com) and Xstrata (now Glencore.com) created the Kabanga nickel joint venture in 2005.