BCL buys Tati Nickel, SA mine

The transaction agreement included its 50 percent participation interest in the Nkomati Nickel and Chrome Mine in Mpumalanga province, as well as its 85 percent stake in Tati Nickel to BCL. This acquisition of Norilsk Nickel’s interest in Nkomati marks the first significant investment by BCL into South Africa under Polaris 11 strategy.

BCL Public Relations and Marketing Manager, James Molosankwe, said the total expected consideration for the assets payable by BCL to Norilsk Nickel amounts to US$337 million (P3.1 billion). Efforts to get separate Tati Mine consideration in the multi-billion deal proved futile. BCL officials said further details would be unveiled in due course. The acquisition of Tati Mine will see government taking full control of the nickel mine. The state already held a 15 percent stake. In addition to the cash transaction, BCL would assume attributable outstanding debt and environmental and rehabilitation liabilities associated with each asset. The agreed deal structure envisages the assignment of the Nkomati concentrate off-take agreement from Norilsk Nickel to BCL.