Appian Capital Advisory has finalized the $420 million sale of Mineração Vale Verde (MVV), a mid-scale copper-gold mine in Brazil, to China's Baiyin Nonferrous Group. Originally announced in November, the transaction has now received all necessary approvals. This marks Appian’s 13th successful exit after strategically acquiring and optimizing undervalued mining assets. CEO Michael Scherb emphasized that the sale reinforces Appian’s expertise in identifying overlooked opportunities and leveraging in-house technical capabilities to enhance their value.

Previously, in October 2022, Appian and its affiliates had agreed to sell MVV alongside its Atlantic Nickel unit in Brazil to Sibanye-Stillwater for $1.2 billion. However, just three months later, the South African miner withdrew from the deal. In response, Appian pursued legal action against Sibanye, seeking damages exceeding $600 million. A subsequent 2023 agreement to sell the Brazilian assets to Glencore-backed ACG for $1 billion also collapsed. In October 2023, a UK court ruled in favor of Appian, holding Sibanye liable for damages, with the final amount set to be determined in a hearing later this year. The following month, Appian reached the $420 million agreement with Baiyin for MVV.

MVV’s key asset, the Serrote open-pit copper-gold project in Alagoas, was originally acquired by Appian in 2018 from Aura Minerals. The firm identified Serrote as a unique, construction-ready copper project with valuable gold by-products. Leveraging its mine development expertise, Appian conducted a definitive feasibility study, refining the project’s scope. The revisions included scaling down plant throughput and prioritizing higher-grade resources, which significantly enhanced the project’s economics. These adjustments reduced initial capital expenditure from $420 million to $243 million while lowering operational costs over the mine’s lifespan.

Despite global challenges posed by the COVID-19 pandemic, Serrote was successfully developed and commenced production in May 2021. The project was completed ahead of schedule and under budget by $48 million, marking a significant achievement for Appian. By the fourth quarter of 2022, commercial operations had ramped up to full capacity, and since then, the mine has been operating steadily for over two years. In 2023, MVV produced 18,300 tonnes of copper and 8,200 ounces of gold, underscoring its value as a productive and stable asset.

The successful sale of MVV to Baiyin aligns with Appian’s broader strategy of acquiring, optimizing, and exiting high-potential mining projects. The deal highlights the growing interest of Chinese companies in securing long-term copper supply amid increasing global demand for the metal, driven by the energy transition and industrial growth. Meanwhile, Appian’s legal proceedings against Sibanye remain ongoing, with potential further financial compensation on the horizon.