Billionaire Motsepe's ARM advances deal to reopen nickel mine for European market
African Rainbow Minerals has signed a conditional agreement to supply nickel concentrate to a smelter operated by Boliden AB, a move that could pave the way for the restart of the idled Nkomati mine in South Africa.
Black News 
African Rainbow Minerals has signed a conditional agreement to supply nickel concentrate to a smelter operated by Boliden AB, a move that could pave the way for the restart of the idled Nkomati mine in South Africa.
- African Rainbow Minerals (ARM) signed a conditional agreement to supply nickel concentrate to Boliden AB's smelter in Finland.
- The deal could enable the restart of the Nkomati mine in South Africa, currently idled since 2021 and the country's only primary nickel resource.
- Restarting the mine depends on ARM’s board approval and Boliden completing its due diligence.
- The agreement would secure a long-term market for Nkomati’s output through Europe’s only large-scale nickel smelter.
African Rainbow Minerals has signed a conditional agreement to supply nickel concentrate to a smelter operated by Boliden AB, a move that could pave the way for the restart of the idled Nkomati mine in South Africa.
Under the proposed deal, nickel concentrate from the Nkomati operation would be shipped to Boliden’s Harjavalta smelter in Finland over a multi-year period, according to Bloomberg. However, the restart of mining remains subject to board approval from ARM, while Boliden is expected to complete its due diligence before the agreement is finalised.
The Nkomati mine, which has been inactive since 2021, is South Africa’s only known primary nickel resource. ARM gained full ownership of the asset last year after acquiring the remaining 50% stake from MMC Norilsk Nickel.
ARM said the potential offtake agreement strengthens the business case for restarting operations at Nkomati by securing a reliable route to market for future nickel output. The Harjavalta facility is currently the only large-scale nickel smelter in Europe, making it a strategic partner for the South African miner.
Strategic route to European market
The company is founded and largely owned by billionaire Patrice Motsepe, and has a diversified portfolio spanning coal, gold, manganese, iron ore, and platinum group metals. Boliden, on the other hand, produces a range of metals including copper, zinc, nickel, and lead.
Financial details of the agreement were not disclosed, with ARM citing confidentiality provisions.
The development comes amid recent legal clarity for Motsepe’s broader business interests, after the Gauteng High Court ruled that African Rainbow Capital cannot be held liable in a $195 million (R3.2 billion) lawsuit brought by U.S.-based Pula Group.
