Investment firm Appian Capital Advisory has served Sibanye-Stillwater with a notice of claim seeking compensation for the SA miner's termination of a planned billion-dollar acquisition of two mines in Brazil.

London-based Appian, advising two affiliated private equity funds which own the Brazilian mines, said the transaction was worth over $1.2 billion and called Sibanye's failure to close on it “unlawful”.

Sibanye-Stillwater declined to comment. The company abandoned the deal on Jan. 24, just three months after it had been announced, citing geotechnical instability at the Santa Rita nickel mine which it said would have had a material and adverse impact on operations there.

Appian on Wednesday said it believes Sibanye's characterisation is false, and the instability was a crack in the mine's pit wall which has had no impact on the open-pit mine life.

“Appian intends to rigorously enforce its legal rights and pursue Sibanye-Stillwater for all damages and losses incurred,” the firm said.

Sibanye-Stillwater is in a closed period ahead of results.

It had planned to report 2021 operating and financial results on Feb. 17 but delayed the release to March 3, saying completion was taking longer than planned.

The acquisition of the Santa Rita nickel mine and Serrote copper mine was meant to bolster Sibanye's battery metals portfolio as the miner seeks to diversify away from platinum and gold.

Reuters