The teams, which have a well-established track record of operating in Brazil and have been responsible for successfully developing and optimising the assets, have committed to joining Sibanye-Stillwater ensuring continuity of expertise, knowledge, and proven mining experience.
The Brazilian based Santa Rita and Serrote management teams are led by CEO Paulo Castellari (previously CEO of Mubadala’s bauxite operation in Guinea and CEO of Anglo American’s phosphates and niobium business in Brazil). In addition to generating a strong return on investment based on current operations, there is substantial long-term upside from the potential development of the underground mine at Santa Rita, with this project to be further studied and evaluated over the next 18 months. The Transaction represents an attractive opportunity to acquire two pre-developed and cash flow generating open pit nickel and copper mines. In addition, each asset has a well-defined pipeline of organic growth opportunities including mine optimisation, on site resource potential and regional exploration opportunities. Santa Rita and Serrote are both low-cost and low carbon intensity operations with strong cultural alignment with Sibanye-Stillwater’s focus on health and safety, the environment and local communities. Serrote is a producing open pit copper mine, currently in ramp up, located in the State of Alagoas, Brazil and developed at a cost of US$195 million, on time and under budget. The mine produces a sulphide concentrate suitable for downstream processing to produce battery precursors and has outstanding infrastructure resulting from significant historical investment. Santa Rita is one of the largest nickel-cobalt sulphide open pit mines in the world, located in the State of Bahia, Brazil and includes a preliminary economic assessment (PEA)-stage underground project. Both assets have been substantially pre-capitalised and as a result the Transaction will be immediately accretive to Sibanye-Stillwater’s cash flow and earnings. In line with Sibanye-Stillwater’s strategy to build an operating portfolio of green metals and related technologies, this Transaction is a further meaningful step – adding two low-cost, producing assets to its green metals portfolio. Please refer to announcement made on January 24, 2022, relating to the proposed acquisition of the Santa Rita and Serrote mines in Brazil As the MVV SPA is conditional on the contemporaneous closing of the Atlantic Nickel SPA, and that condition has become impossible to satisfy, the Purchaser has also today given notice of termination of the MVV SPA. The Company has assessed the event and its effect and has concluded that it is and is reasonably expected to be material and adverse to the business, financial condition, results of operations, the properties, assets, liabilities or operations of Santa Rita.Īccordingly, pursuant to the terms of the Atlantic Nickel SPA, Sibanye BM Brazil (Proprietary) Limited (the “Purchaser”), a wholly owned subsidiary of Sibanye-Stillwater, has today given notice of termination of the Atlantic Nickel SPA.
The Company has been advised by Appian that subsequent to the signing of the Atlantic Nickel SPA and the MVV SPA a geotechnical event occurred at Santa Rita.
On 26 October 2021 Sibanye-Stillwater announced that it had entered into purchase and sale agreements with affiliates of funds advised by Appian Capital Advisory LLP (“Appian”) to purchase 100% of the Santa Rita nickel mine (“Santa Rita”) and the Serrote copper mine, both located in Brazil, for a cash consideration of US$1.0 billion and a 5.0% net smelter royalty over potential future underground production at Santa Rita (the “Atlantic Nickel SPA” and the “MVV SPA”, respectively).
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