KEY POINTS
- Sibanye-Stillwater must pay Appian $1.2 billion in damages for scrapping a mine deal.
- The dispute centers on the cancellation of agreements for two Brazilian mines.
- Sibanye argues Appian received other offers, seeking to reduce the financial impact.
Sibanye-Stillwater, a major player in precious metals mining, has been ordered to pay $1.2 billion to Appian Capital Advisory following a UK court ruling.
The decision comes after the South African miner canceled agreements to purchase two mines in Brazil, leading to a lengthy legal battle.
Dispute over Brazil mine deal
The legal battle began in 2022 when Sibanye-Stillwater walked away from its agreements to acquire shares in Atlantic Nickel and Mineração Vale Verde.
According to Mining.com, these companies own the Santa Rita nickel and Serrote copper mines in Brazil. Sibanye justified the termination by citing a geotechnical event at Santa Rita, but Appian contested this claim, calling it inaccurate.
Following a five-week trial, the court ruled that Sibanye had no legitimate grounds to cancel the agreements, dismissing its reasoning for withdrawing from the deal. Appian now seeks to recover full damages, including interest accumulated since Sibanye’s withdrawal in early 2022.
Financial implications for Sibanye
Sibanye, though relieved that claims of willful misconduct were dismissed, still faces a significant payout.
The court found that the company’s decision to cancel the deal lacked merit, putting Sibanye on the hook for the hefty compensation. A hearing in November 2025 will determine the final amount Sibanye owes.
Despite the court’s ruling, Sibanye has argued that Appian received offers for the Brazilian mines from other potential buyers, suggesting that the full amount of losses should not fall solely on Sibanye.
Impact on Sibanye’s portfolio
The acquisition was initially intended to diversify Sibanye’s portfolio away from platinum and gold, strengthening its position in critical metals.
The Santa Rita mine, one of the few operational long-life nickel sulphide mines, also yields copper, cobalt, and platinum group metals.
As Sibanye faces these legal challenges, it continues to focus on expanding the mine’s underground operations.
The Santa Rita mine’s transition to underground mining is expected to extend its life and increase production capacity, with high-grade nickel reserves playing a key role.
