Bustamante Steers Appian's $600M Investment in Brazilian Nickel

Appian Capital Advisory is injecting $600 million into its Santa Rita nickel operation located in Bahia, Brazil, under a restructured operational strategy. Ignacio Bustamante, head of the Base Metals division at Appian, is managing Atlantic Nickel's transition from open-pit to underground mining. This development aims to extend the mine's life by over two decades. Appian is focusing on building in-house expertise and acquiring early-stage equipment to support this transition, with construction expected to be completed between 2025 and 2030. The investment comes despite challenging market conditions and entails expanding an already low-cost operation into higher-grade underground resources. A key hurdle for Appian is the legal battle with Sibanye-Stillwater in the UK courts over a terminated $1.2 billion deal, for which Appian has been awarded damages. Despite the current unfavorable market for asset divestment, Appian views the Santa Rita asset as a top-tier project with promising long-term prospects amidst robust nickel demand. Bustamante emphasizes Brazil's favorable mining environment and its vast geological potential, particularly in the Itabuna-Salvador-Curaçá belt, as significant opportunities for further nickel development.