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Nornickel exiting Nkomati JV in South Africa

Nkomati’s assets include a deposit of disseminated copper-nickel sulphide ores, a dormant mine, and an open pit

MOSCOW, November 24. /TASS/. Norilsk Nickel has entered into an agreement on transfer of its 50% share in Nkomati Joint Venture in South Africa to African Rainbow Minerals Limited, the company said in a statement.

"Nornickel through its South African subsidiary, Norilsk Nickel Africa Proprietary Limited (NNAf), has entered into a definitive agreement with African Rainbow Minerals Limited (ARM) to transfer its 50% interest in Nkomati Joint Venture (Nkomati mine)," the statement reads.

The transaction is expected to close during 2024 subject to the necessary South African regulatory and competition authorities’ approvals and certain other conditions precedent as agreed between NNAf and ARM, the company added.

"According to the terms of the signed purchase and sale agreement, ARM will take over the environmental liabilities of Nkomati mine, together with NNAf’s proportionate share of the obligations and liabilities relating to the Nkomati mine’s assets," Nornickel said.

With this agreement Nornickel underscores its strategic commitment to developing its unique resource base and Tier-1 assets portfolio in Russia as well as its long-term strategy to exit non-Tier-1 assets, the company noted.

Nkomati’s assets include a deposit of disseminated copper-nickel sulphide ores, a dormant mine, and an open pit. Production was terminated there in March 2021.

Norilsk Nickel is a diversified mining and metallurgical company, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper. The company also produces cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium, sulphur, and other products. Its production units are located in the Norilsk Industrial District, on the Kola Peninsula and the Trans-Baikal Territory in Russia, as well as in Finland.