Africa's First Black Billionaire, Patrice Motsepe's Arm Takes Full Ownership Of Nickel Mine From Russian Giant

African Rainbow Minerals (ARM), led by Africa's first Black billionaire Patrice Motsepe, is set to acquire full ownership of the Nkomati nickel mine in Mpumalanga, South Africa. ARM will purchase the remaining 50 percent stake from Norilsk Nickel Africa (NNA), the local subsidiary of Russian mining giant Norilsk Nickel.

Under the agreement, ARM will assume NNA's share of obligations and liabilities related to the mine's assets and environmental responsibilities. This includes a contribution of R325 million ($17.7 million) from NNA. Additionally, ARM has earmarked R836 million ($45.5 million) for the mine's rehabilitation, underscoring its commitment to responsible mining practices.

This acquisition follows ARM's purchase of a 50 percent joint venture stake in the Nkomati nickel mine nearly nine months ago for R1 million ($0.053 million) in cash. In that deal, ARM also took over NNA's share of environmental liabilities and obligations related to the mine's assets. However, its latest move aligns with Motsepe's strategy to proactively pursue valuable lithium and copper assets amid rising global demand driven by the clean energy transition.

ARM's decision to acquire the Nkomati mine is influenced by the mine's well-known and predictable nickel sulphide orebody, established infrastructure, low carbon footprint, and short lead times for production. The mine also offers attractive bi-metal product credits, further aligning with ARM's commitment to the South African mining sector.