Norilsk Nickel, through its Norilsk Nickel Africa Proprietary Limited (NNAf) subsidiary, has entered into an agreement to transfer a 50% stake in the Nkomati joint venture to its South African partner, African Rainbow Minerals Limited (ARM).
To date, Nkomati's assets include a deposit of interspersed copper-nickel sulfide ores, an underground mine that was mothballed in 2015, as well as a quarry.
Production was stopped in March 2021, and the Nkomati enterprise is put on maintenance and reclamation.
According to the terms of the signed agreement, in addition to the share in the joint venture, ARM will assume all obligations of Nkomati, including environmental ones, in exchange for the NNAf contribution to be paid in favor of ARM, according to a press release from Norilsk Nickel.
The transaction is expected to close during 2024 after obtaining the necessary permits from South African regulators and fulfilling other closing conditions agreed by the parties.
By concluding this agreement, Norilsk Nickel confirms its commitment to a long-term strategy of exiting non-first-class foreign assets, and also strengthens its focus on implementing a strategy to ensure the reliability and development of a unique mineral resource base and processing facilities in the Russian Federation.
Alex Shishlo for Rough&Polished
