Greek ferro-nickel producer Larco starts battle to privatise

The privatisation of Greek ferro-nickel producer Larco General Mining & Metallurgical Co is proceeding in the face of a good deal of market scepticism about the move.

The company, however, remains optimistic it will attract multiple interested parties ahead of its privatisation. The privatisation drive follows efforts earlier this year by the Greek government to secure International Monetary Fund assistance in restructuring Larco and other nationalised companies under state ownership. The proposal was rejected. Larco operates several mines in Greece, split into four groups, as well as a smelting plant. Its assets contain proven lateritic ore reserves exceeding 100 million tonnes at a grade of 0.95%-1.00% nickel. The company is operating at its full production capacity of 19,000 tpy of ferro-nickel and said it has recently signed new contracts for 2014 with most of its regular clients. The Greek Ministry of Finance has appointed HSBC Bank plc and PricewaterhouseCoopers Business Solutions as financial advisers on the sale of its 55.2% stake in Larco. The rest of the company is owned by the National Bank of Greece and...

Published

Janie Davies

December 05, 2013

15:14 GMT

London