JSE-listed ARM, chaired by billionaire Patrice Motsepe, said on Friday that it had recognised a R1.16bn impairment before tax and R892million after tax at Nkomati, which it co-owns with Norilsk, the giant Russian mining company.
ARM attributed the impairment loss to a decline in head grade, resulting in a decreased metal output. It also attributed the loss to the inability to generate sufficient cash for operational requirements and a higher increase in production costs.
“We are in discussions with our partner on the future of the mine,” the company said.
Nkomati Mine recorded a headline loss of R186m, mainly as the spot nickel prices sank in the period under review. Spot nickel prices fell to $10595 (R150632) in December, from $14940 on July 1, 2018, the company said.