African Rainbow Minerals (ARM) has signed an offtake agreement with Boliden Commercial AB, taking a major step toward reopening its idled Nkomati nickel mine in Mpumalanga province.
According to an ARM statement, the deal supports the potential resumption of mining at Nkomati and strengthens the commercial case for the restart by securing an offtake channel for future nickel concentrate production.
The transaction is described as a conditional nickel concentrate sales agreement, under which output from Nkomati will be shipped to Boliden's Harjavalta smelter in Finland, the only major nickel smelter in Europe.
Nkomati was forced to halt production in 2021 due to heavy losses, prompting ARM to impair the asset. Since then, as nickel prices recovered, ARM has been evaluating the possibility of restarting operations, particularly underground mining.
Nkomati was originally a 50/50 joint venture with Russian mining group Norilsk Nickel, but ARM acquired 100% control of the mine in 2023.
ARM did not disclose detailed commercial terms of the offtake agreement, except that it provides for the sale of nickel concentrate over a multi-year period.
The agreement is subject to several conditions, including Boliden completing responsible sourcing due diligence.
ARM said the deal enables Nkomati to access the European market, which increasingly focuses on responsibly sourced nickel products, thereby strengthening ARM's position in the clean energy value chain.
Written by Cora Ji, jiruyan@mysteel.com
