Sumitomo Metal Mining Acquires Full Ownership of Coral Bay Nickel Corp

Sumitomo Metal Mining has acquired full ownership of Coral Bay Nickel (CBNC) after purchasing the remaining shares from Nickel Asia (NAC). In a stock exchange filing on Monday, NAC confirmed it signed a Special Purchase Agreement to sell its 15.625% stake in CBNC to Sumitomo.

Prior to the transaction, Sumitomo already held an 84.38% majority stake in the nickel processing company. The acquisition consolidates Sumitomo's control over CBNC, which has been operational since 2005 and produces over 20,000 tonnes of nickel and 2,000 tonnes of cobalt annually at its processing plant near the Rio Tuba mine.

NAC’s decision to divest from CBNC comes amid financial constraints and a strategic shift in response to market volatility. Andre Dy, NAC vice president for Treasury and Investor Relations, cited declining nickel prices and rising operational costs as key factors affecting CBNC’s financial performance in recent years.