Leading companies in UK, Africa and Latin America unite for billion dollar metal mining deal

South African precious metals company Sibanye-Stillwater has engaged three leading law firms as legal advisers for the purchase of the Santa Rita nickel mine and the Serrote copper mine in Brazil for 1 billion dollars.

UK firm Clifford Chance, South African firm Cliffe Dekker Hofmeyr and Brazilian firm Machado Meyer are all advising Sibanye-Stillwater on the deal, according to a statement from the metallurgical firm.

The company has signed agreements with affiliates of funds advised by Appian Capital Advisory to purchase both mines for cash consideration and a 5% net smelter return royalty on potential future Santa Rita underground production.

Santa Rita is one of the largest nickel-cobalt sulphide surface mines in the world and produces a sulphide concentrate used in the production of batteries.

This relates to Sibanyei-Stillwater’s announced entry into the battery metals industry in February 2021 by investing in a lithium hydroxide project in Finland.

Both Santa Rita and Serrote are low-cost, low-carbon mining operations, which is in line with Sibanye-Stillwater’s transition to a “climate resilient company,” CEO Neal Froneman said.

A spokesperson for Clifford Chance said his team advising on the deal includes David Lewis, partner and co-head of the company’s mining and metals group, and Anthony Oldfield, managing partner of the Sao Paulo office, assisted by Dan Bomsztyk, Senior Partner in London. .

The deal comes just a month after the company’s Africa manager, Anthony Giustini, confirmed Africa’s importance to CC’s global strategy.

CDH has confirmed that its team of advisors includes Allan Reid, Brian Jennings and Ian Hayes, directors in its corporate and commercial practice, one director being the equivalent of the firm’s partner.

Howmera Parak and Stephan Spamer, Directors of Tax and Currency Control Practice at CDH, are also advising on the Sibanye-Stillwater transaction.

Machado Meyer did not respond to a request for comment.

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