Minmetals to sell nickel mine

Minmetals Resources Ltd, the publicly traded unit of China's biggest metals trader, is seeking a buyer for the Avebury nickel mine in Australia, saying it will be better run by another company.

There's "quite a bit of interest" in the mine, which is on the west coast of the Australian state of Tasmania, said Andrew Michelmore, Minmetals CEO, in an interview in Melbourne. The company is undertaking the "unofficial sale process" without the assistance of banks, he said.

Avebury, which can produce about 8,500 tons of nickel concentrate a year, was closed in December 2008 after prices for the metal, which is used to harden steel, decreased by about 70 percent in nine months. Mining companies, including BHP Billiton Ltd, are increasing their spending at a slower pace and shedding their smaller assets as the rising cost of developing mines, plants, rails and ports curbs their ability to make returns.