Sibanye was told to pay damages for the $1.2 billion Brazilian mines deal that fell through

The South African miner Sibanye Stillwater (SSWJ.J), opens new tab, has to pay investment company Appian Capital Advisory money because they broke a $1.2 billion deal to buy Appian’s nickel and copper mines in Brazil, the High Court in London said Thursday.

By 12:46 GMT, Sibanye’s Johannesburg stock had dropped 7.1%.

After Sibanye, a company based in Johannesburg that makes precious metals, back out of a deal to buy the Santa Rita and Serrote mines in Brazil in January 2022, the consulting business filed a lawsuit to get paid.

The judge, Christopher Butcher, said that Sibanye was “under an obligation to close” the deal and had no reason to back out of the deal.

Appian said it would try to get back all the money it lost in the failed deal, “including the substantial interest that would have been earned since January 2022.”

“If Sibanye cannot pay in full the damages awarded to Appian in the quantum trial, Appian will pursue all enforcement options,” it wrote in a statement.

The news release also said that the amount of money to be paid would be settled at a hearing in the London High Court in November 2025.

In a separate statement, Sibanye said that a trial might be needed to figure out how much money it might have to pay Appian in penalties.

In October 2021, Sibanye revealed a deal to buy the mines owned by people connected to funds advised by Appian. This was to be the company’s biggest move into battery minerals.

After three months, it ended the deal because of geotechnical instability at the Santa Rita mine, which it said would have had a big and bad effect on future operations.