African Rainbow Minerals Chairperson Patrice Motsepe. Picture: Simphiwe Mbokazi.
Anglo American Platinum (Amplats) has on Monday announced that it plans to sell its 49% stake in Bokoni Mine to Patrice Motsepe's African Rainbow Minerals (ARM).
In a statement, the mine said the transaction is set to generate R3.5 billion. The transaction is expected to complete in 2022.
Amplats owns the Limpopo-based mine through a joint venture with Atlatsa Resources, which holds a 51% stake.
Amplats CEO Natascha Viljoen said the company was pleased that Bokoni mine was sold to an operator with the technical and operational capability and funding to ensure the restart and sustainable future for the mine.
"The restart of the mine by ARM is expected to benefit employees, host communities, broader stakeholders, and the regional economy and allow employees and communities to participate in a new ownership structure.”
According to Amplats, the joint venture between Atlatsa and Anglo American Platinum was set up in 2007. "In 2017, Bokoni Mine was placed on care and maintenance, following several years of significant cash losses under difficult market conditions," it said.
ARM said that the group is buying Bokoni mine because of the mine’s platinum group metals (PGM) resource and the fact that it is a “natural fit” with ARM’s other platinum operations on the Eastern Limb of the Bushveld Complex, which are the Modikwa and Two Rivers mines.
It said it intended to develop a new mine focussed on the UG2 reef where previous operations at Bokoni had concentrated on the Merensky Reef.
ARM chairperson Patrice Motsepe said: "The acquisition and development of Bokoni Platinum Mines will enable us to scale their PGM portfolio, improve ARM’s global competitiveness, and allow us to pursue further value accretive organic growth.”
According to ARM, the acquisition would place the group as a global primary PGM producer.
The deal also includes a contract for ARM to sell the concentrate produced by Bokoni to Amplats for a period of 23 years starting from the first concentrate delivery from the mine, ARM said.
BUSINESS REPORT ONLINE
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