UK-based private equity fund Appian Capital Advisory is reportedly in advanced talks with Canada’s Teck Resources for the sale of its Brazilian subsidiary Atlantic Nickel for around $1bn.

Teck Resources is cited as one of the likely buyers, reported O Estado de S. Paulo newspaper.

In May 2021, Reuters reported that Atlantic Nickel hired investment banks, including Citi and Standard Chartered, to help explore strategic options include a potential sale.

Talks with Canadian banks RBC Capital Markets and Bank of Montreal (BOM) focused on considering a potential listing, possibly in Toronto.

According to the sources, Atlantic Nickel is working with Goldman Sachs on the option of going public through a combination with a special-purpose acquisition company (SPAC).

The sale is part of the firm’s efforts to capitalise on the surging demand for metals, which are used in electric batteries, reported the newspaper citing four sources.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Atlantic Nickel operates the Santa Rita open pit nickel-copper-cobalt mine, in the northeastern state of Bahia. It is claimed to be one of the largest open-pit nickel sulphide mines in the world.

The fully permitted, past-producing nickel mine has an estimated production capacity of 6.5 million tonnes per annum (Mtpa).

The mine was operated for six years by Mirabela Nickel prior to being placed on care and maintenance due in 2015, due to low nickel prices.

In 2018, Appian purchased the mine by acquiring Mirabela Nickel as part of a bankruptcy process during the same year.

Upon completion of the open-pit operations scheduled until 2028, the mine is planned to be transitioned into an underground mining operation to extend the operational life from eight to 34 years.

Last year, Atlantic Nickel signed a three-year offtake contract for a part of the production from the Santa Rita project with global commodities trader Trafigura.