MMC Norilsk Nickel sells another foreign asset

MMC Norilsk Nickel and BCL Limited on October 18 in Johannesburg signed an agreement on the sale of Norilsk Nickel's African assets in Botswana and South Africa. The amount will amount to $ 337 million. MMC Norilsk Nickel is selling to BCL Limited 50 percent of Nkomati Nickel and ChromeMine in South Africa and 85 percent of Tati Nickel Mining Company in Botswana. Under the terms of the agreement, after signing, BCL is fully responsible for debt as well as environmental obligations.

The signing of the agreement became a significant event in the economic activity of Norilsk Nickel, since this is the largest transaction in terms of the rational formation of the asset portfolio, in accordance with the new policy, which involves the withdrawal from assets that do not meet the level of the updated class standards.

After the fulfillment of the basic conditions and obtaining the mandatory approvals of the relevant authorities, the transaction will be considered closed. In time, this process will take at least six months.
The main financial advisor on the part of Norilsk Nickel was Barclays Bank, and the main financial advisor to BCL - AFI.

The previous deal, which triggered the full optimization of the asset portfolio, involved the sale of gold assets in Western Australia.
The most profitable and top-notch foreign asset is Norilsk Nickel Harjavalta, which is located in Finland and is the undisputed leader in nickel production. According to the reporting data, Norilsk Nickel Harjavalta produces 50 thousand tons of pure nickel per year.