ARM To Acquire Norilsk Nickel Africa Limited’s 50% Participation Interest
ARM To Acquire Norilsk Nickel Africa Limited’s 50% Participation Interest. ARM and Norilsk Nickel Africa Proprietary Limited have signed a Sale Agreement (“PSA”) which provides for the acquisition by ARM of NNAf’s 50% participation interest in its partnership with ARM that operates the Nkomati mine for a cash consideration of R1 million.
ARM will take over the environmental liabilities of Nkomatimine, together with NNAf’s proportionate share of theobligations and liabilities relating to the Nkomati mine’sassets, with a R325m contribution from NNAf, as may be adjustedunder the terms of the PSA.
There were several positive considerations that informed ARM’s decision to acquire NNAf’s 50% participation interest in its partnership with ARM that operates the Nkomati mine. These include but are not limited to:
- Nkomati mine is a known and predictable nickel sulphide orebody, with established infrastructure, relatively lower carbon emission footprint, low capital intensity and short lead times to resuming steady state production of class one compatible nickel sulphide concentrate, the preferred feed to nickel sulphate production sought after by battery manufacturers.
- It has attractive bi-metal product credits including copper, cobalt, platinum, palladium, and chrome.
- ARM is committed to the short-, medium-, and long-term success of the South African mining industry.
Nornickel is Russia’s leading metals and mining company, the world’s largest manufacturer of palladium and refined nickel, and one of the biggest platinum and copper producers. The Group also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, and sulphur.
The Nornickel Group’s core operations are prospecting, exploration, mining, concentration and processing of minerals along with the production, marketing and sales of non-ferrous and precious metals. The products are supplied to over 30 countries. The Group’s production units are located in Russia (Norilsk Industrial District, Kola Peninsula and Trans-Baikal Territory) and in Finland.
African Rainbow Minerals (ARM) is a leading South African diversified mining and minerals company with operations in South Africa and Malaysia. ARM mines and beneficiates iron ore, manganese ore, chrome ore, platinum group metals (PGMs), nickel and coal and also has a strategic investment in gold through Harmony Gold Mining Company (Harmony).
