African Rainbow Minerals (ARM) is set to become the sole owner of the Nkomati Mine, located in Mpumalanga. ARM is acquiring the remaining 50% stake in the mine from its current partner, Norilsk Nickel Africa (NNA), the local subsidiary of a Russian mining company Norilsk Nickel.
Nkomati Mine is a key part of ARM’s pivot to cater to the renewables market.
This strategic move solidifies ARM’s control over the mine, renowned for its rich deposits of nickel, copper, cobalt, and platinum group metals.
While currently under care and maintenance, the Machadodorp mine was previously a significant producer of these valuable resources from its open-pit facility and two concentrators.
The agreement includes ARM assuming NNA’s share of obligations and liabilities related to the mine’s assets and environmental responsibilities, with a contribution of R325m from NNA.
ARM has also allocated R836m for the mine’s rehabilitation, demonstrating its commitment to responsible mining practices.
The Competition Commission has reviewed the proposed acquisition and determined that it does not raise any significant competition or public interest concerns.
Restart operations
This paves the way for ARM to complete the transaction, subject to final approval from the Competition Tribunal.
With full ownership of the Nkomati Mine, ARM will have greater control over its future development and potential restart of operations.
This move aligns with ARM’s strategy of consolidating its mining assets and expanding its presence in the South African mining sector.
The deal is expected to be close later this year, pending final regulatory approvals.
ARM will expand its influence on the local nickel market as the critical mineral becomes a bigger player in the energy transition.