Russian mining giant Norilsk Nickel settled dispute with government of Botswana

Photo: fin-consult

The Russian mining giant Norilsk Nickel has settled a dispute with the government of Botswana and Botswana's state-owned BCL Group over the sale of Norilsk Nickel's African assets to BCL Group, including a 50% stake in the South African joint venture Nkomati, according to recent statements, made by representatives of the Russian company.

The parties waived their claims against each other, and Norilsk Nickel received the agreed monetary compensation (its amount was not disclosed). As a result, the company withdrew its claim against the BCL Group from the London International Court of Arbitration (LCIA).

Currently "Nornickel" is engaged in the formal termination of the process in Botswana against the government of the country.

In 2007, Norilsk Nickel acquired LionOre with assets in Africa and Australia for $ 6.4 billion (including stakes in Nkomati and Botswana's Tati Nickel). In October 2014, the Russian company entered into an agreement with BCL to sell 85% in Tati Nickel and 50% in Nkomati for a total amount of $337 million. In April 2015, Norilsk Nickel announced the completion of the sale of Tati Nickel, without specifying the amount of the transaction. In September 2016, the agreement became absolute, but BCL did not complete the deal.

By: Eugene Gerden