Mining

Fact Sheet

Experience

  • Mergers and Acquisitions

    • Norilsk Nickel in its buyback of issued outstanding shares for a total purchase price of $2 billion.
    • Polyus Gold International in its sale of up to a $1.4 billion stake in PJSC Polyus to Fosun International. (Terminated)
    • Polyus Gold International in its sale of a minority stake in PJSC Polyus to Russian Direct Investment Fund. (Terminated)
    • Ultra Group in its $77 million joint venture with Sredneuralsk Copper Smelter to operate an ammonium sulfate production plant.
    • PVDC, a subsidiary of Barrick and Goldcorp, in a renegotiation of the terms of the Pueblo Viejo Special Lease Agreement with an NPV of $1.5 billion.
    • Mitsui in its investment in VLI, a cargo logistics company.
    • Mitsui in its joint venture with Codelco to acquire 29.5% of Anglo American Sur.
    • Companhia Brasileira de Metalurgia e Mineração (CBMM) in the sale of a stake in CBMM to a consortium of five Chinese companies for $1.95 billion, and on a separate sale, to a consortium of Japanese and Korean companies, for the same value.
    • Polyus Gold International in the $635.5 million sale of its shares to Chengdong Investment Corporation and JSC VTB Bank.
    • KazakhGold Group Limited in a reverse takeover of Polyus Gold valued at $10 billion.
    • Polyus Gold in its acquisition of 50.1% of KazakhGold Group.
    • Uralkali in its $8.1 billion merger with Silvinit.
    • Phelps Dodge in its $26 billion merger with Freeport-McMoRan Copper & Gold, forming the world’s largest publicly traded copper company.
    • Arcelor in the €27 billion acquisition by Mittal Steel.
    • Phelps Dodge in its $40 billion merger (later terminated) with Canadian mining companies Inco and Falconbridge.
    • Chelyabinsky Tube-Rolling Plant in its sale of the Chelyabinsky Zinc Plant to a consortium of independent investors, including Ural Mining and Metallurgy Company and Russian Copper Company.
    • NLMK in its $750 million acquisition of a controlling interest in Altai Koks and Prokopievsk Ugol.
    • KM Technologies in its acquisition of an interest in a Russian gold mining company from an Irish company.
    • Mitsui in its $240 million joint venture with EVRAZ Group to develop the Denisovskoye coal deposit.
    • Mitsui in its $900 million sale of the Brazilian mining company Caemi Mineração e Metalurgia to Vale and the related $830 million purchase by Mitsui of a significant interest in Valepar, the controlling shareholder of Vale.
    • Chelyabinsk Pipe Rolling Plant in its acquisition of Nova Zinc, a Kazakh zinc mining company.
    • NLMK in its sale of its 92% stake in Kombinat KMAruda, an iron-ore producing company, to Russian company Koks and Cyprus company Lesser Enterprises Limited.
    • Nord Est in its sale of Société Denain Anzin Minéraux to Imerys.
    • Polyus Gold in its $285 million purchase of three gold mining companies from IG Alrosa.
    • Mitsui in its acquisition of the Brazilian mining company Caemi Mineração e Metalurgia (CMM) and the related sale of 50% of CMM to Companhia Vale do Rio Doce.
    • Two Japanese companies in their joint venture and, as a consortium, acquisition of 21% interest in the Goro Nickel Development Project, a $1.9 billion project to develop a cobalt-nickel mine in the Goro area of New Caledonia and construct a hydro-pressue acid leaching facility.

  • Project Finance

    • Och-Ziff in the establishment of a private equity funds programme investing in Africa.
    • Polyus Gold in the development of a gold mine to exploit the Natalka deposit in Northeastern Russia.
    • Phelps Dodge in the debt financing facilities totaling $450 million for the $850 million expansion of Sociedad Minera Cerro Verde copper mine near Arequipa, Peru. This transaction won “Latin American Deal of 2005” by Project Finance Magazine and “Project Finance Deal of the Year 2005” by Latin Lawyer.
    • A consortium of five major Japanese trading companies and six Japanese steel manufacturers in the financing of an iron ore mine in Minas Gerais, Brazil.
    • Mitsui and Sumitomo Metal Mining in their joint venture and, as a consortium, acquisition of a 21% interest in the Goro Nickel Development Project, a $1.9 billion project to develop a cobalt-nickel mine in the Goro area of New Caledonia and construct a hydro-pressure acid leaching facility.

  • Securities Offerings

    • Norilsk Nickel in its $500 million Eurobond offering of 2.80% notes due 2026.
    • PJSC Polyus in its $700 million Eurobond offering of 3.25% notes due 2028 and a related tender offer for outstanding notes due 2023 and 2024 for the aggregate principal amount of $605.3 million.
    • NLMK in its €500 million Eurobond offering of 1.45% notes due 2026 and a related tender offer for outstanding notes due 2023 and 2024 for the aggregate principal amount of $470.6 million.
    • NLMK in its $500 million Eurobond offering of 4% notes due 2024, and a related tender offer for outstanding notes due 2018 and 2019 for the aggregate principal amount of $317 million.
    • Nornickel in its $1 billion Eurobond offering of 4.10% notes due 2023.
    • Norilsk Nickel in its $1 billion Eurobond offering of 6.625% notes due 2022.
    • The principal shareholder of NLMK in its block sale of shares and global depositary receipts under Rule 144A/Regulation S.
    • Jenington International in its approximately $1 billion offer to purchase for cash issued and outstanding shares and American depositary receipts of OJSC Polyus Gold.
    • Polyus Gold International in its admission to listing and trading American depositary shares on the London Stock Exchange, the first-ever LSE listing of depositary receipts without an initial public offering. (Terminated)
    • Norilsk Nickel, one of the world’s premier metals and mining operations, in the spin-off of its gold assets and the creation of Polyus Gold, a major international gold company with a market capitalization in excess of $9 billion.
    • NLMK in its $800 million Eurobond offering of 4.45% notes due 2018.
    • Polyus Gold International in its $9 billion premium listing on the London Stock Exchange.
    • NLMK in its debut $500 million Eurobond offering of 4.95% notes due 2019.
    • Uralkali in its debut $650 million Eurobond offering of 3.723% notes due 2018.
    • Polyus Gold International in its debut $750 million Eurobond offering of 5.625% notes due 2020.

  • Leveraged and Other Finance

    • Norilsk Nickel in its up to $2.5 billion syndicated term loan facility with an international syndicate comprising 17 banks and financial institutions.
    • A major Russian metals and mining company in a $1.5 billion pre-export finance facility with a syndicate of banks secured by export receivables.
    • Norilsk Nickel in its $400 million unsecured revolving credit facility with Barclays Capital and BNP Paribas (Suisse) S.A. as joint bookrunners.
    • Phelps Dodge in its $1.1 billion revolving credit facility with Citigroup Global Markets as lead arranger.
    • Norilsk Nickel in its $250 million credit facilities secured over contracts for the export of nickel and nickel-related products.
    • Uralkali in its $1 billion pre-export facility agreement provided by a syndicate of 14 international banks.
    • Open market purchases in respect of common shares and GDRs representing common shares of Uralkali by its subsidiary.
    • Norilsk Nickel in its $2.1 billion 5-year unsecured syndicated loan facility.

  • Disputes

    • Freeport-McMoRan and Sociedad Minera Cerro Verde in an ICSID arbitration against Peru under the U.S.–Peru Trade Promotion Agreement, with claims of approximately $1 billion. The dispute arises out of the Government’s imposition of royalties, taxes, and penalties and interest against its affiliate, which operates one of the world’s most productive copper mines.
    • NLMK in its successful defence in the English High Court against an application to enforce a Russian arbitral award that had been set aside by the Russian courts.
    • Bulyanhulu Gold Mine Limited and Pangea Minerals Limited, subsidiaries of Acacia Mining plc, in an arbitration against the United Republic of Tanzania under the UNCITRAL Rules.
    • Tethyan Copper Company, a joint venture of Antofagasta Minerals and Barrick Gold, in its US$6 billion arbitration win against the Islamic Republic of Pakistan, which is the second-largest ICSID award ever rendered.
    • Claimant Tethyan Copper Company (jointly owned by Barrick Gold and Antofagasta Minerals) in an ICC arbitration against the Pakistani province of Balochistan in disputes regarding a copper and gold mining project in the west of Pakistan.
    • Pueblo Viejo Dominicana, a joint venture between Barrick Gold and Goldcorp, in a dispute with the Dominican Republic regarding the Pueblo Viejo gold, silver and copper mine, which is reported to be the largest foreign investment in the Dominican Republic.
    • Norilsk Nickel and Interros International Investments in a dispute with United Company Rusal, including LCIA arbitration proceedings and related court litigation in the United States, England, Russia, Switzerland, St. Kitts & Nevis and The Netherlands.
    • A major publicly listed mining company in a dispute with an African government regarding a multibillion-dollar mining project.
    • A Brazilian mining company in a series of disputes relating to the pricing of its worldwide supply contracts.
    • An Asian investor in a Brazilian mining company in an ICC arbitration arising from a joint venture agreement, successfully defeating claims exceeding $100 million.
    • A Canadian mining group in a dispute with the government of an African country, concerning claims of breach of the tax stabilisation and other provisions of an agreement for the operation of a copper treatment facility, and an expropriation of certain of the mining company’s rights.
    • A major London-based mining company and its African subsidiary, one of the largest mining and metals companies in Africa, in four parallel LCIA arbitrations relating to a $500 million dispute with a major contractor over short delivery and other alleged breaches of a contract for mining services at an open cast copper mine in Southern Africa.
    • Barrick Gold and seven of its current and former officers and directors in a securities class action arising from the development of a mining project in South America.
    • A leading natural resources group in its criminal investigation by the SFO into allegations of fraud, bribery and corruption relating to the activities of the company or its subsidiaries in Kazakhstan and Africa.
    • A European natural resources company in a transfer pricing investigation and proceedings involving allegations of tax and customs fraud.
    • An investor in an African mining project in a dispute arising from an electrical power supply agreement with the national electric company.
    • A major publicly listed mining company in designing an industry-wide alternative dispute resolution protocol for government disputes in Africa.
    • Mechel, a Russian mining and metals conglomerate, in winning dismissal of securities fraud claims in the Southern District of New York brought after senior Russian officials made negative comments about the company and levied an antitrust fine for alleged price discrimination.
    • Corbiere and Raleigh, wholly-owned subsidiaries of Russian miner Norilsk Nickel, in a dispute between Rusal and the Interros Group over the buyback of Norilsk shares worth $3.5 billion.  These complex, inter-related proceedings involved parallel litigation in England, the Caribbean, the United States and Russia. Amongst the interrelated proceedings was the successful defence of a Norwich Pharmacal application, in which Rusal sought to obtain documents relating to Debevoise’s representation of Norilsk, Corbiere and Interros.
    • An international mining group in its ongoing tax dispute in the context of development agreements with the Government of Zambia.