BHP to Get Bids for Nickel Mine: Report

NEW YORK (TheStreet) -- BHP Billiton(BHP Quote) is reportedly about to receive a bid for a big Australian nickel mine, developed and operated so poorly by the company that it had to shut it down earlier this year.

Two mining outfits -- the government-run China Metallurgical Group and the Australian nickel miner Minara Resources -- will submit a joint offer for the mine, known as Ravensthorpe, The Wall Street Journal reported Wednesday, citing anonymous sources "familiar with the sale process."

For its part, BHP has said it wants to raise about $460 million by unloading Ravensthorpe. It cost BHP some $2 billion to develop and construct the mine, which the company says can produce up to 50,000 metric tons of nickel a year, but so many technical problems beset the operation that BHP decided to close it down in January as commodities prices collapsed amid the financial crisis and recession.

Other bidders are reportedly in the hunt, as well: Poseidon Nickel, also of Australia, and First Quantum, of Canada.

As the Journal pointed out, interest in buying the troubled mine sends a strong signal that some industry players believe that demand for metals -- and thus the global economy -- will gain strength enough to justify the costs associated with restarting Ravensthorpe.