Sibanye-Stillwater Abandons Brazilian Mine Acquisitions Due to Geotechnical Issue

Sibanye-Stillwater Limited has announced the termination of its purchase agreements for the Santa Rita nickel mine and the Serrote copper mine located in Brazil. The company had initially entered into sale agreements with Appian Capital Advisory in October 2021, intending to acquire both operations for US$1.0 billion and a 5.0% net smelter royalty on potential future underground production at Santa Rita.

The decision to terminate comes after Sibanye-Stillwater was advised of a geotechnical event at the Santa Rita mine subsequent to the signing of the purchase agreements. Following an assessment, the company concluded that the event has had, and is reasonably expected to have, a material and adverse impact on the business, financial condition, and operations of Santa Rita.

Consequently, Sibanye BM Brazil (Proprietary) Limited, a wholly owned subsidiary, has formally notified Appian Capital Advisory of its termination of the Santa Rita purchase agreement (Atlantic Nickel SPA). As the Serrote mine purchase agreement (MVV SPA) was conditional upon the contemporaneous closing of the Santa Rita deal, and this condition has become impossible to satisfy, the MVV SPA has also been terminated.

The original transaction structure included a significant cash component and a royalty interest. Sibanye-Stillwater has not provided further details on the specific nature of the geotechnical event or its immediate fallout, stating only that the condition for the Serrote acquisition could no longer be met. The company will now focus on its existing portfolio and strategic objectives.