• Donation
  • About Us
  • Career
  • Advertise
  • Contact
Sunday, April 18, 2021
No Result
View All Result
NEWSLETTER
Africa Eco News
18 °c
Nairobi
  • Climate Change
  • Pollution
  • Energy
  • Wildlife
  • Environment
  • Infographic News
    • HEALTH
    • SPORTS
    • GAMES
      • CODEWORD
      • Sudoku
      • Simple Crossword
    • TODAY
      • HOROSCOPE
      • Quote Of The Day
      • Thought Of The Day
      • Today In History
      • TODAY’S BUSINESS TIP
      • Today’s Currency Exchange
      • Today’s Life Lesson
      • Today’s Personal Finance Tip
      • Today’s Prayer
      • Today’s Stock Market
    • NEWS KIOSK
    • PHOTO GALLERIES/SLIDES
  • AFRICA ECO NEWS TV
  • Climate Change
  • Pollution
  • Energy
  • Wildlife
  • Environment
  • Infographic News
    • HEALTH
    • SPORTS
    • GAMES
      • CODEWORD
      • Sudoku
      • Simple Crossword
    • TODAY
      • HOROSCOPE
      • Quote Of The Day
      • Thought Of The Day
      • Today In History
      • TODAY’S BUSINESS TIP
      • Today’s Currency Exchange
      • Today’s Life Lesson
      • Today’s Personal Finance Tip
      • Today’s Prayer
      • Today’s Stock Market
    • NEWS KIOSK
    • PHOTO GALLERIES/SLIDES
  • AFRICA ECO NEWS TV
No Result
View All Result
Africa Eco News
No Result
View All Result
Home Mining

Mining companies in legal battle over assets in Africa worth US$ 271m

byadmin
December 1, 2016
inMining
0
0
SHARES
10
VIEWS
Share on FacebookShare on Twitter

A paddle wheel-bucket- excavator for coal open pit mining. Photo/Pexels
By OUR REPORTER
newsdesk@reporter.co.ke
Four international mining companies are embroiled in a legal battle over sale of a 50 percent stake in a South African company.
The companies involved the legal tussle include Norilsk Nickel Mauritius and Norilsk Nickel Africa Pty Ltd (together “Norilsk”) (www.Nornik.ru/en) NILSY (NASDAQ), MNOD (LSE), GMKN (MOEX), announce that they have filed legal claims against BCL Limited and BCL Investments Proprietary Limited (together “BCL”) (http://www.BCL.bw) in the Botswanan courts and in the London Court of International Arbitration to recover the USD 271.3 million (plus damages and other costs) that they are owed in relation to the sale of a 50% interest in the Nkomati JV in South Africa (“the Assets”).
Norilsk agreed in October 2014 to sell their operations in Africa to BCL for total consideration of USD 337 million. The acquisition, announced by BCL as a strategic priority as part of its high-profile “Polaris II” diversification and investment strategy, was designed to guarantee the long-term future of BCL’s operations by securing the supply of concentrate to its smelter in Selebi Phikwe, Botswana.
Late 2015, in view of the situation on global metals markets and following BCL’s request for renegotiation, Norilsk agreed to make a number of price concessions. Since that date, Norilsk have consistently signalled their intent to constructively discuss any further proposals reasonably required to complete the transaction.
The transaction obtained final regulatory approvals, and therefore became unconditional, on 6 September 2016 and the parties were obliged to complete the deal on 13 September 2016. In breach of BCL’s agreement with Norilsk, however, BCL has made no attempts to close the transaction.
In early October 2016, Norilsk learned through the media that BCL had been placed into provisional liquidation.
Norilsk Nickel Africa CEO, Michael Marriott, said: “BCL has failed to honour its obligations under the sale agreement concluded in October 2014. The failure of BCL to abide by its obligations under the sale agreement is unacceptable in any business transaction. This deplorable conduct has resulted in the BCL smelting and mining operations being placed into provisional liquidation.
“The closure of BCL will have a devastating effect on the livelihoods of thousands of people, and a negative impact on the regional economies which rely on the BCL smelter to beneficiate nickel, copper and PGM concentrates. It is disappointing to note that the Government of Botswana recently invested in refurbishing the BCL smelter, at an estimated cost of 700 Million Pula, giving hope to the people of Botswana that BCL had a good future with Nkomati able to supply the bulk of concentrates for beneficiation. Botswana has an excellent reputation internationally as a country with a sound investment climate. These actions by BCL could jeopardise that reputation.
“Throughout the process Norilsk has acted in good faith, and given BCL repeated opportunities and offers of assistance to complete the transaction, including concessions to significantly reduce the sale price.
“Norilsk has done everything possible to support BCL in its endeavours to secure its long-term future, and therefore sees no other option but to defend its interests in courts with jurisdiction over the matter.”
Norilsk’s assets comprise a 50% share in the Nkomati Nickel and Chrome Mine (“Nkomati”). Nkomati is a large mine in the Mpumalanga Province in the east of South Africa and Africa’s largest primary nickel producer. Nkomati has since the transaction been the primary supplier of concentrate to BCL’s smelter in Selebi Phikwe, an important mining town in central Botswana and the largest local employer.
Without concentrate supplies from Nkomati – which had continued since the transaction was announced – the Selebi Phikwe smelter may become unviable, with the potential loss of more than 5,000 jobs and a negative impact on families and businesses in Selebi Phikwe.
Michael Marriott added, “The fall-out could also be even wider. The Southern Africa Development Community (“SADC”) has repeatedly announced their desire to beneficiate minerals within the region and the South African Department of Mineral Resources (DMR) was also highly supportive of the transaction as it meant that Nkomati’s concentrate containing, nickel, copper, platinum and palladium would be beneficiated by BCL in the region thereby benefiting the Southern African regional economy. Instead, if BCL were to be closed, this means that Tati Nickel, and the Selkirk Project will most likely not proceed, severely impacting people and businesses in Francistown as well.”

Help us report stories that expose environmental degradation, deforestation, pollution, poaching and ivory trade, illegal fishing, dumping of toxic waste, e-waste and plastics, illegal mining, climate change and impacts of global warming on different sectors of the economy and communities, not only in Africa, but also across the globe. While traditional news reporting is losing its relevance, serious investigative journalism requires more than basic journalistic skills. To do this we require a lot of resources.
You can either BECOME A SPONSOR or MAKE A CONTRIBUTION


Nelson Mandela once said: “A critical, independent, and investigative press is the lifeblood of any democracy. The press must be free from state interference. It must have the economic strength to stand up to the blandishments of government officials. It must have sufficient independence from vested interests to be bold and inquiring without fear or favor. It must enjoy the protection of the constitution, so that it can protect our rights as citizens.”

If you like our journalism support us to continue bringing you groundbreaking and agenda setting stories.

admin

admin

Next Post

US accused of interference in Dakota Access Pipeline

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

UN: urgent action needed to safeguard shrinking forests and their biodiversity

UN: urgent action needed to safeguard shrinking forests and their biodiversity

11 months ago
Researchers uncover indoor air pollution hazards

Researchers uncover indoor air pollution hazards

2 years ago

Popular News

    Connect with us

    Newsletter








    Recent Posts

    • How to initiate and register a carbon credits trading project in Kenya
    • The role carbon credits projects play in implementation of SDGs
    • How Kenyan villagers are using carbon credits and indigenous knowledge to fight climate change impacts
    • Climate change, biodiversity loss and pollution a threat to humanity says UN boss
    • UN releases a calendar of events to build momentum on climate change ahead of COP26 conferences

    Like & Follow us :)

    Share

    About Us

    Africa Eco News

    Shinning light on environmental degradation and conservation in Africa

    • Donation
    • About Us
    • Career
    • Advertise
    • Contact

    Copyright 2018. Africa Eco News. All rights reserved.

    No Result
    View All Result
    • Climate Change
    • Pollution
    • Energy
    • Wildlife
    • Environment
    • Infographic News
      • HEALTH
      • SPORTS
      • GAMES
        • CODEWORD
        • Sudoku
        • Simple Crossword
      • TODAY
        • HOROSCOPE
        • Quote Of The Day
        • Thought Of The Day
        • Today In History
        • TODAY’S BUSINESS TIP
        • Today’s Currency Exchange
        • Today’s Life Lesson
        • Today’s Personal Finance Tip
        • Today’s Prayer
        • Today’s Stock Market
      • NEWS KIOSK
      • PHOTO GALLERIES/SLIDES
    • AFRICA ECO NEWS TV

    Copyright 2018. Africa Eco News. All rights reserved.

    Login to your account below

    Forgotten Password?

    Fill the forms bellow to register

    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In