Norilsk resolute on Botswana

Norilsk Nickel will not back down on its demand that BCL, Botswana’s government-owned nickel mining and smelting company in provisional liquidation, pay it $271m to honour a deal struck to buy Botswana and South African assets belonging to the Russian company.

In what has become an increasingly unpleasant and complicated transaction, Norilsk Nickel Africa CEO Michael Marriott said while there were hopes that the matter could be resolved through channels outside the courts including possible government-to-government engagement, the world’s largest nickel and palladium miner would not retreat from its demand that BCL and the Botswana government honour the terms of the $337m deal struck in October 2014.

The price for Norilsk’s 85% stake in Tati Nickel in Botswana and its 50% stake in Nkomati Nickel Mine in SA was reduced by $60m a year later because of weak nickel prices.

Norilsk has launched legal action in Botswana and has opened a case against BCL and the government in the London Court for International Arbitration, a matter that is suspended until the postponed court process in the Botswana high court is concluded.

Norilsk welcomed news reports that a Middle East company called Emirates Investment House had been in contact with the Botswana government about buying BCL. Marriott said that if this was Gaborone’s preferred method to find the money to pay Norilsk, then the Russian company had no complaints.

Marriott said the “frustrating” delays from the Botswana government and BCL, which has already taken ownership of Tati but not paid for it, could lead to additional damages claims.