Amplats, the world's largest platinum miner, has sold its Rustenburg mines and is removing itself from a number of joint ventures to focus on its mechanised, shallow and less labour-intensive operations to position itself as one of the lowest-cost platinum producers in SA.
The sale and purchase agreement for the 85% stake in the underground Union Mine and the 50.1% interest in Masa Chrome Company to Sibanye entails an upfront payment of R400m in cash and 35% of free cash flow from the mines for 10 years, with a cap of R6bn. Amplats will use the money to repay debt.
Siyanda will sell its platinum group metal (PGM) concentrate to Amplats for seven years and after that the contract will change to a toll treatment contract.
The transaction, which has a host of conditions, is expected to close in the second half of this year, but has a final date of June next year.
"We are pleased to deliver another important milestone in the strategic repositioning of Anglo American Platinum's portfolio. The Union Mine and Masa Chrome operations are quality assets that I believe have long-term and sustainable potential under Siyanda's ownership," said Amplats CEO Chris Griffith.
Union produced 151,000oz of platinum in 2016.
According to its website, Siyanda is an investment company formed in 2004 by "black mining engineers and other black professionals" and has interests in manganese, coal and nickel. It is a partner with Amplats in Masa Chrome.
Source: BDpro
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
