Oct 26 (Reuters) - South Africa's Sibanye Stillwater said on Tuesday it would buy Santa Rita nickel mine andSerrote copper mine in Brazil for $1 billion, in what will beits biggest investment in the battery metals sector.
The precious metals miner said it had signed agreements withaffiliates of funds advised by Appian Capital Advisory to buyboth the mines for a cash consideration and a 5% net smelterreturn royalty over potential future underground production atSanta Rita. Sibanye, headed by Chief Executive Neal Froneman, has beendiversifying into new-age metals in a bid to transform thecompany from a South Africa-focussed gold and platinum groupmetals (PGM) producer to being a diversified global miner.
Its primary focus has been in metals of the future as itlooks to build its environmental, social and governancecredentials amongst investors and hedge its future as reservesof gold deplete in South African mines.
Its move into battery metals was kicked off earlier thisyear with the acquisition of a minority stake in Keliber lithiumproject in Finland and that of a nickel processing plant inFrance for a total value of 113.69 million euros ($132.31million).
Last month, it also invested $490 million for a 50% interestin a joint venture with a U.S. company to develop alithium-boron project.
The Tuesday's transaction will add two low-cost, producingassets to the company's green metals portfolio and willimmediately add to its cash flows and earnings, the company saidin a statement.
(Reporting by Shanima A in Bengaluru and Promit Mukherjee;Editing by Anil D'Silva)