Blackstone, the world’s largest alternative asset manager, recently made a major move in the resource sector with the option to acquire a major nickel asset.
The asset they have acquired is a high-grade nickel and copper mine located in the Mékrou River Basin in northern Benin. The project site is located within the Wolframite belt in the Ahozon-Goungou North-South Structure. It is comprised of three main ore zones: the Akoi, Tyden and Okenfefe.
Blackstone has secured the option to acquire a controlling stake in the project from the Nigerian firm, Unity Mining Company Limited. Upon completion of the transaction, Blackstone will become the single largest shareholder in the asset.
The deal includes the development of a large-scale open pit mine, in addition to related infrastructure and processing facilities. Once operational, it is estimated that the mine could produce close to 10,000 tonnes of nickel and copper concentrates per annum.
The nickel concentrate from the mine is expected to be sold to local and international customers, including nickel alloy and stainless steel producers. The project is intended to deliver economic benefits to local communities and generate much-needed employment and investment opportunities.
This strategic move by Blackstone marks an important milestone in the development of the resource sector in West Africa. It will pave the way for other major mining firms to follow suit and take advantage of the significant investment opportunities in the area.
The acquisition is also a clear indication of Blackstone’s continued commitment to its global resource business. The firm has made its mark in the mining industry over the past few years with a series of investment deals in the sector, including the largest single acquisition of an exploration company in Africa.
It is expected that the completion of the transaction will see Blackstone become a major player in the West African resource industry. This could potentially drive further investment in the region and lead to a positive impact on the local economy.
