African Rainbow Minerals to acquire Nornickel’s stake in South Africa
African Rainbow Minerals (ARM) has purchased stake in the Nkomati joint venture in South Africa. The Nkomati joint venture operates the Nkomati nickel mine, which has been on care and maintenance since 2021.
The deal involves ARM acquiring NNAf’s 50% stake in the Nkomati mine, including environmental liabilities and obligations associated with the mine’s assets. The agreement is subject to competition approvals, with completion expected next year.
The existing joint venture partnership between ARM and NNAf will terminate upon the closing of the deal. Nornickel emphasizes its strategic commitment to developing its resource base and tier-one assets portfolio in Russia and outlines its long-term strategy to exit non-tier-one assets.
Nkomati mine
The Nkomati mine produces a variety of metals, including platinum, palladium, copper, cobalt, and chrome. ARM sees potential in the Nkomati mine, describing it as a known and predictable nickel sulphide orebody with established infrastructure, a relatively lower carbon emission footprint, low capital intensity, and short lead times to resume steady-state production.
However, ARM notes that the mine’s existing condition is challenging due to ongoing expenses related to care and maintenance, coupled with an uncertain commodities outlook. Earlier in the year, Nornickel sold its exclusive distribution company for nickel, platinum group metals, and cobalt in the Americas to TMP Metals Group, positioning TMP as one of the top suppliers of metals and metal products in the Americas.
