A High Court in London has determined that Sibanye-Stillwater, which is listed on both the JSE and NYSE, is liable for damages following the termination of a $1.2 billion agreement with investment adviser Appian Capital concerning two nickel mines in Brazil.
The termination occurred in January 2022, with Sibanye-Stillwater claiming that a geotechnical event at Atlantic Nickel’s Santa Rita mine in November 2021 constituted a material adverse effect under the sale and purchase agreement (SPA).
Justice Butcher concluded that the geotechnical event “would not reasonably have been expected to be material” and stated that the reasons provided by Sibanye-Stillwater did not justify the termination of the SPAs. The court found no other valid grounds for the defendants’ actions.
In a statement to the JSE, Sibanye-Stillwater emphasized that the court dismissed Appian’s claim of willful misconduct, affirming that its management genuinely believed they had the right to terminate the agreement in the best interests of the business.
The case will now proceed to a second phase, with a trial set for November 2025 to determine the potential damages Sibanye-Stillwater may owe to Appian. Appian intends to recover these losses in full, including significant interest that would have accrued since January 2022.
The organization warned that if Sibanye is unable to pay the damages awarded in the quantum trial, it will pursue all available enforcement options.
Sibanye-Stillwater maintains that Appian could have sold the Santa Rita and Serrote mines to another buyer for a similar purchase price after the SPAs were canceled and therefore could not recover any losses incurred from Sibanye-Stillwater. The judgment noted that Appian received multiple offers for the mines following the termination.
“Sibanye-Stillwater will continue to defend the claim vigorously at the quantum trial in November 2025,” the South Africa-based company stated.
Atlantic Nickel’s Santa Rita project is one of the few long-life nickel sulfide mines globally, producing nickel along with by-products such as copper, cobalt, and platinum group metals.
The company is actively advancing the asset’s underground extension development, transitioning from open-pit to underground mining.
This shift to higher-grade nickel is anticipated to boost production rates and extend the mine’s lifespan to over 20 years.
