Norilsk Nickel ready for BCL in London

Mbongeni Mguni | Friday May 31, 2019 20:49

 

Since BCL’s closure in October 2016, Norilsk Nickel has fought for $271 million it claims the Selebi-Phikwe miner owes under a 2014 deal involving the purchase of Tati Nickel and Nkomati, a nickel mine in Mpumalanga, South Africa.

Early last year, government had offered to settle with the Russians for P522 million, but BCL’s liquidator scuppered the deal arguing that the validity of the 2014 contract was as yet unproven.

Norilsk cancelled the 2014 contract with BCL on Christmas Day last year and thus at the London Court of International Arbitration (LCIA) will not be seeking fulfilment of the contract, but instead damages.

“LCIA will have to determine whether all conditions precedent to the Nkomati transaction had been fulfilled and to assess the damages to be paid by BCL to Norilsk,” a representative of the Russian giant told BusinessWeek in an emailed response to questions.

The representative added: “Norilsk has already engaged its counsel to proceed with the LCIA arbitration”. Insiders close to the deal have said LCIA talks may have to wait for the finalisation of appeals filed before South African minerals minister, Gwede Mantashe, concerning the 2014 deal.  South Africa’s newly inaugurated President, Cyril Ramaphosa, is yet to announce his Cabinet.

Norilsk Nickel is also awaiting a date in the local High Court in a case in which it is suing BCL’s former directors for reckless trading, in connection with the mine’s closure. Contrary to reports that this particular suit had been set aside ahead of the LCIA talks, Norilsk representatives said the miner was still pursuing the case.

“Yes we are still pursuing the lawsuit, but no substantive hearing has taken place yet,” the representative said.