MMC Norilsk Nickel: NORNICKEL TERMINATES DEAL WITH BCL AND CONTINUES TO SEEK DAMAGES FROM BOTSWANA FOR BREACH OF CONTRACT

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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: [phone] Phone: [phone] 
Email: [e-mail] Email: [e-mail] 
 
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)