Appian sold a pair of Brazilian portfolio companies focused on battery metals for $ 1 billion (Â£ 720 million) and additional royalties.
The London-based private equity firm, which invests only in mining and mining-related companies, has sold its wholly-owned subsidiaries Atlantic Nickel and MineraÃ§Ã£o Vale Verde to Sibanye-Stillwater, a multinational mining company. precious metals.
Appian acquired Atlantic Nickel (formerly Mirabela Nickel), owner of Santa Rita, one of the world’s largest surface nickel sulfide mines, located in Bahia, Brazil (Santa Rita) after bankruptcy in 2018.
In the same year, it also purchased MVV, owner of the Serrote open-pit copper-gold asset located in Alagoas, Brazil (Serrote).
The deals, which mark Appian’s fourth and fifth releases this year, were for a $ 1 billion cash consideration and an additional 5.0% NSR royalty on production from the Santa Rita underground expansion. .
The group said it was “a logical time for Appian to exit assets,” citing the restart of Atlantic Nickel and the commissioning of MVV, as well as support from strong base metals markets, particularly the nickel and copper for electric vehicles and decarbonization.
Earlier this year, Appian Capital Advisory raised $ 775 million for its second mining-focused fund, as it bets the global transition to a low-carbon economy will reduce the supply of metals such as copper. and nickel.