Nkomati

History

2023: Norilsk Nickel's exit from the company's capital

On November 24, 2023, Nornickel announced the sale of its 50% stake in the South African company Nkomati, whose assets include a deposit of interspersed copper-nickel sulfide ores, an underground mine mothballed in 2015, as well as a quarry. After production ceases in 2021, Nkomati is under conservation and remediation.

Nkomati's stake was received by Norilsk Nickel's partner in this joint venture, African Rainbow Minerals Limited (ARM), a South African company. The transfer of assets was organized through the group's Norilsk Nickel Africa Proprietary Limited (NNAf), the press service of the Russian company noted.

Norilsk Nickel announced the sale of its 50% stake in the South African company Nkomati

The terms of the contract stipulate that, in addition to a stake in the joint venture, ARM will assume all obligations of Nkomati, including environmental obligations, in exchange for an NNAf contribution payable to ARM. Closing of the transaction is expected 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 for withdrawing from foreign assets that do not meet the criteria for first-class performance, and also strengthens its focus on implementing a strategy for ensuring the reliability and development of a unique mineral resource base and processing facilities in the Russian Federation, Norilsk Nickel said in a statement[1]

2013-2014

Nornickel put up for sale its 50% stake in Nkomati in 2013 as part of a strategy to exit non-core and foreign assets until 2016. As a result, the company was going to raise $1 billion to pay special dividends to shareholders. In 2014, agreements were reached to sell 50% in Nkomati to Botswana company BCL, two years later all the necessary permits were obtained. But BCL refused to fulfill its obligations, and the Botswana government initiated a process to liquidate the company.

Notes