JSE and NYSE-listed Sibanye-Stillwater has been found liable for damages by the High Court in London following the termination of a $1.2-billion agreement with investment advisor Appian Capital regarding two nickel mines in Brazil.
The diversified mining company terminated the agreement in January 2022, because a geotechnical event at Atlantic Nickel's Santa Rita mine in November 2021 constituted a material adverse effect under the sale and purchase agreement.
Mining Weekly reports that in the ruling, Justice Butcher determined that the geotechnical event "would not reasonably have been expected to be material" and that the reasons cited by Sibanye-Stillwater did not constitute a valid basis for terminating the agreements.
The court also dismissed Appian's claim of wilful misconduct.
Sibanye-Stillwater management said they genuinely believed that they had the right to terminate the agreement in the best interests of the company.
A trial was set for November 2025 to determine the potential damages that Sibanye-Stillwater may owe to Appian.
Appian intends to pursue full recovery of these losses, which include a substantial interest that would have accrued since January 2022.
“If Sibanye cannot pay in full the damages awarded in the quantum trial, Appian will pursue all enforcement options available,” it said.
For its part, Sibanye-Stillwater maintained that Appian could have sold the Santa Rita and Serrote mines to another purchaser at a comparable price before the agreements were revoked. Consequently, it could not recover any losses it had incurred from Sibanye-Stillwater.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
