Nornickel's South African subsidiary, Norilsk Nickel Africa Proprietary Limited (NNAf), has entered into an agreement to sell its 50% interest in the Nkomati nickel mine joint venture to African Rainbow Minerals (ARM). This strategic move will see ARM assuming environmental liabilities and related obligations of NNAf's share at the mine, which has not been operational since 2021. The sale is pending regulatory approval and is expected to be completed next year.
The Nkomati mine, known for its valuable bi-metal credits including platinum and copper, is situated within a predictable nickel sulphide orebody. Despite facing financial pressures due to ongoing maintenance costs, ARM sees potential in the mine's existing infrastructure to rapidly resume production of nickel sulphide concentrate. This concentrate is particularly sought after by battery manufacturers for its low carbon footprint.
This divestiture is part of Nornickel's broader strategy to focus on their tier-one asset portfolio in Russia. Earlier in the year, Nornickel also sold its North American distribution network to TMP Metals Group, positioning TMP as a key supplier in the Americas. The sale to ARM will not only relieve Nornickel of its joint venture obligations but also marks an end to the partnership with ARM, as Nornickel continues to streamline its operations amidst fluctuating commodity prices.
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