Russians sue BCL over P3bn deal

Friday, December 02, 2016

Russian group, Norilsk Nickel, the world’s largest producer of nickel, has filed a lawsuit to recover $271.3 million (P3 billion) and other costs from BCL Ltd, in relation to a failed 2014 deal. The local mine was to buy equity from the Russians.

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.

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Russians sue BCL over P3bn deal

Russian group, Norilsk Nickel, the world’s largest producer of nickel, has filed a lawsuit to recover $271.3 million (P3 billion) and other costs from BCL Ltd, in relation to a failed 2014 deal. The local mine was to buy equity from the Russians.