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MMC Norilsk Nickel (MNOD)
MMC Norilsk Nickel: NORNICKEL TERMINATES DEAL WITH BCL AND CONTINUES TO SEEK
DAMAGES FROM BOTSWANA FOR BREACH OF CONTRACT
25-Dec-2018 / 11:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
December 25, 2018
Public Joint Stock Company «Mining and Metallurgical Company «NORILSK
NICKEL»
(PJSC "MMC "Norilsk Nickel", the "Company", "Nornickel")
NORNICKEL TERMINATES DEAL WITH BCL AND CONTINUES TO SEEK DAMAGES FROM
BOTSWANA FOR BREACH OF CONTRACT
Nornickel has terminated its agreement to sell African assets to BCL Group,
including a 50 percent stake in the Nkomati joint venture. The notice of
termination was submitted to BCL on 20 December 2018. The termination
results from BCL Group's serious breaches of contract.
Nornickel's termination of the agreement means that it will no longer be
requiring the BCL Group to purchase Nornickel's interest in the Nkomati
joint venture. Instead, Nornickel will continue to seek damages from BCL for
the significant loss it has suffered as a result of BCL's failure to honour
its obligations. The termination of the agreement will also enable Nornickel
to pursue its own strategy for the African assets.
Michael Marriott, Norilsk Nickel Africa's Chief Executive, said:
"We delivered on all of our obligations to the BCL Group and are dismayed by
their unwillingness to engage in a constructive dialogue with a foreign
investor. We have made efforts in good faith to arrive at a compromise, but
they have so far proved futile. Sadly, different branches of Botswana's
government and BCL's representatives failed to agree on the approach to
resolving the dispute, and in spite of the announcements by top public
officials, the dispute with Nornickel has not been settled.
Given that the BCL Group will not be purchasing our interest in Nkomati, we
will now pursue our own strategy in respect of the African assets. However,
we will continue to pursue our claims against the BCL Group and the Botswana
Government to recover the significant loss we have suffered as a result of
their unlawful breaches."
In October 2014, Nornickel and the BCL Group signed a share purchase
agreement, which provided for the transfer to the BCL Group of Nornickel's
interests in the Nkomati and Tati mines. The agreement became unconditional
in September 2016. Yet, BCL failed to perform its obligations. Instead, in
October 2016, the Botswana Government applied to the High Court of Botswana
and placed the BCL entities into provisional liquidation.
Nornickel is looking to pursue its claim for damages in the London Court of
International Arbitration (LCIA), and requested permission to do so from the
courts of Botswana. In June 2018 the Botswanan court rejected to grant such
permission. Nornickel filed an appeal against this judgement and the
Botswanan Court of Appeal is due to consider this appeal in January 2019.
Nornickel also filed a reckless trading claim against the Government of
Botswana (BCL's shareholder), seeking to declare it responsible for the
liabilities of the BCL entities.
ABOUT THE COMPANY
PJSC «MMC NORILSK NICKEL» is a diversified mining and metallurgical company,
the world's largest producer of refined nickel and palladium and a leading
producer of platinum, cobalt, copper and rhodium. The company also produces
gold, silver, iridium, selenium, ruthenium and tellurium.
The production units of «NORILSK NICKEL» Group are located at the Norilsk
Industrial District, on the Kola Peninsula and Chita region in Russia as
well as in Finland and South Africa.
PJSC «MMC «NORILSK NICKEL» shares are listed on the Moscow and on the
Saint-Petersburg Stock Exchanges. PJSC «MMC «NORILSK NICKEL» ADRs trade over
the counter in the US and on the London and Berlin Stock Exchanges.
Media Relations: Investor Relations:
Phone: +7 (495) 785 58 00 Phone: +7 (495) 786 83 2
Email: pr@nornik.ru Email: ir@nornik.ru
ISIN: US55315J1025
Category Code: MSCH
TIDM: MNOD
Sequence No.: 7006
EQS News ID: 761929
End of Announcement EQS News Service
(END) Dow Jones Newswires
December 25, 2018 03:00 ET (08:00 GMT)
