Russians sue BCL over P3bn deal

Norilsk Nickel and BCL Ltd entered into a $337 million  (P3.6 billion) binding agreement in October 2014, for the sale of the Russian group’s 50% stake in South Africa’s Nkomati Mine and its 85% stake in Tati Nickel Mining Company (TNMC).  BCL began smelting concentrate from both mines, earning revenues of P466 million per annum.

However, a drop in nickel prices, a P754 million smelter refurbishment and steep cash crunch, saw BCL Ltd battling for survival, with government applying for provisional liquidation in October. Government is the BCL Ltd’s sole shareholder.