BHP raised its offer for Canadian nickel miner Noront Resources to c $419.3 million (US $339.1 million), or C $0.75 per share, on Wednesday.
On Monday, Noront said it had chosen Wyloo Metals' c $0.7 per share offer.
The two companies began their battle for Noront Resources in July, when BHP offered c $0.55 a share and Wyloo upped its offer in late August with a $258 million offer.
Noront owns the Eagle's Nest deposit in the Ring of Fire region of northern Ontario, Canada. Described by Wyloo as the largest high-grade nickel deposit in Canada since Voisey's Bay, it has an initial mine life of 11 years and will begin commercial production in 2026. The two sides are convinced of the huge potential of nickel deposits and have been engaged in rounds of competition.
Wyloo Metals' competing intention is to create a "world class Metals hub of the future" in Ontario. The company has committed c $25 million to study the potential for establishing a local battery metal supply chain in the Canadian province as well as the potential for a new ferrochrome plant. The company had estimated nickel production would need to increase nearly fourfold to meet expected demand for electric and hybrid vehicles.
Joining BHP Billiton, which had wanted to exit the nickel business, the tug-of-war between the two Australian companies is the latest evidence of global miners' push into low-carbon energy by securing supplies of battery metal ahead of an expected surge in demand for electric vehicles.
