Norilsk Nickel Africa (NNAf), a division of Russian mining giant Nornickel, has agreed to transfer its 50% stake in the Nkomati joint venture (JV) to African Rainbow Minerals (ARM) in South Africa.
The JV operates the Nkomati nickel mine, which has been under care and maintenance since 2021.
The definitive deal involves ARM taking over the environmental liabilities of the Nkomati mine along with NNAf’s share of obligations linked to the mine’s assets.
This agreement, pending competition approvals, is expected to be finalized next year, marking the conclusion of the existing JV partnership between ARM and NNAf.
Nornickel highlighted its strategic focus on enhancing its resource base and tier-one assets portfolio in Russia by divesting non-tier-one assets like Nkomati. The mine hosts various metals such as platinum, palladium, copper, cobalt, and chrome.
ARM emphasized the potential of the Nkomati mine, citing it as a known nickel sulphide orebody with established infrastructure, relatively lower carbon emissions, and swift potential to resume nickel sulphide concentrate production, preferred by battery manufacturers for nickel sulphate production.
However, ARM acknowledged the challenges of maintaining the mine, citing ongoing care and maintenance expenses and market uncertainty.
Previously, Nornickel divested its exclusive distribution company for nickel, platinum group metals, and cobalt in the Americas to TMP Metals Group, aiming to solidify TMP’s position as a top supplier in the Americas for metals and metal products.
