NewsSouthern AfricaNorilsk Nickel files lawsuit against Botswana over Nkomati stake sale

Thu,23Nov2017

Posted on Friday, 28 April 2017 14:42

Norilsk Nickel files lawsuit against Botswana over Nkomati stake sale

By Reuters

German Chancellor Angela Merkel, right, welcomes the President of Botswana, Seretse Khama Ian Khama, left, in Berlin, Germany, March 7, 2017. Photo: Michael Sohn/AP/SIPARussia's Norilsk Nickel said on Friday it had filed a lawsuit against the government of Botswana to try to recoup $271 million plus damages it says it is owed from the aborted sale of a 50% stake in the Nkomati mine in South Africa.

 

Botswana's state-run BCL Mine pulled out of a $281m deal in October last year to buy a 50% stake in Nkomati Nickel Mine from Norilsk due to lack of funds.

Norilsk said in a statement it had served a notice of proceedings on the attorney general of Botswana, the minister of mineral resources and the minister of finance.

The mining company said that funding for the deal would come from or be guaranteed by the government but the state had made no effort to complete the deal.

Disregard for fair, frank and reasonable dealing 

"The government has displayed a complete disregard for the fair, frank and reasonable dealing with outsiders which BCL's insolvent circumstances demanded," Norilsk Nickel Africa CEO Michael Marriott said in a statement.

Norilsk had previously also filed a lawsuit in December 2016 against the BCL Group, saying it had failed to honour its obligations under the sale agreement.

Botswana officials were not immediately available for comment.

 



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