LONDON, UK: ACG (formerly known as Appian Capital Advisory) has unveiled its agreement to acquire two profitable mining operations in Brazil, specializing in the production of low-carbon nickel sulphide and copper concentrates.

The acquisition aims to bolster the supply chain for electric vehicle (EV) manufacturers in western countries, reinforcing the critical minerals sector.

The cash- and debt-free deal encompasses the Atlantic Nickel nickel sulphide mine in Santa Rita and the Mineraçao Vale Verde (MVV) copper mine in Serrote. ACG will purchase these long-life and low-cost mines from funds advised by Appian, with a combined enterprise value of $1.0 billion. Notably, both mines rank among the top 10% globally in terms of carbon emissions efficiency for nickel and copper producers. In 2022, the mines generated a combined Adjusted EBITDA of $260 million.

The acquisition has garnered support from renowned global investors, including Glencore, Stellantis, La Mancha, Royal Gold, and PowerCo. Additionally, Citigroup, ING, and Societe Generale have provided commitments for senior debt financing. The backing from these industry players highlights the significance of securing a reliable supply of critical minerals for the rapidly growing EV market.

Following the acquisition, the company will be rebranded as ACG Electric Metals. It aims to offer EV manufacturers and industrial clients in western countries a secure supply, full supply-chain transparency, and products with minimal carbon emissions. The strategic focus of ACG Electric Metals lies in strengthening the western EV supply chain, aligning with the demand surge triggered by the global energy transition.

Artem Volynets, CEO of ACG, expressed pride in the landmark transaction and the strategic partnerships with Glencore, Stellantis, La Mancha, PowerCo, and Royal Gold. He emphasized the company’s commitment to becoming a premier supplier of critical metals for the western EV value chain while maintaining best-in-class environmental, social, and governance (ESG) characteristics.

ACG Electric Metals aims to capitalize on the rising demand for battery metals, the diversification of supply chains, and the urgent need to reduce carbon emissions throughout the value chain. By acquiring these high-quality mines, ACG establishes a solid foundation for growth, focusing on long-term shareholder value creation and positioning itself as the go-to green metals supplier for western EV automakers.

Michael W. Scherb, Founder and CEO of Appian, highlighted the significance of this transaction, emphasizing the crucial role of robust and sustainable supplies of EV commodities for western automotive OEMs and industries. Appian’s investment strategy centers on providing critical minerals for the energy transition and green technology, aligning with global decarbonization trends.

ACG’s acquisition of these market-leading mining assets underscores its dedication to optimizing and expanding the mines’ production in collaboration with its partners. With this move, ACG aims to cater to the increasing demand for EV minerals while contributing to the global shift towards decarbonization and sustainable practices in the industry.