JOHANNESBURG (miningweekly.com) − Platinum miner Anooraq on Friday said that it was in discussions with Anglo American Platinum (Amplats) to refinance and restructure its R2,5-billion debt.

Speaking to Mining Weekly Online Anooraq business development head Joel Kesler said that the company’s intention to refinance and restructure debt was made known at the time of the Bokoni acquisition in July 2009.

“We had to take on a highly-leveraged transaction in 2009 at interest rates of 14,65%. It was almost like bridge financing, and our plan was always to refinance that very expensive debt package between 2012 and 2015,” Kesler explained.

Amplats, which holds about R1,8-billion of Anooraq’s debt, would now also take on a R671-million loan obligations that the company had with SCB and Rand Merchant Bank.

“This means that further discussions can now be held without external influences and essentially as joint partners,” said Kessler.

Anooraq and Amplats have also embarked on a strategic review of all the junior miner’s assets.

“This marks a meaningful step forward in solidifying our partnership with Amplats and accelerating our refinancing initiatives,” said newly appointed CEO Harold Motaung.

He added that refinancing and restructuring of the Bokoni deal was important, but said that Anooraq’s key focus would still remain on tackling the current operational challenges faced at the mine.

Anooraq reported a sharp drop in production during its March quarter, owing to safety-related stoppages and a continued lack of mining flexibility.

Production for the three-month period at 22 173 oz of 4E platinum group metals (PGM) was 28% down from that of the previous quarter when the mine produced 30 776 oz and 17% from the comparable period last year, when it produced 26 594 oz.

Motaung said that the company had lost about 10% of its production shifts to safety-related stoppages. Anooraq has now embarked on a number of interventions at Bokoni to tackle issues of noncompliance at the mine.

All mining personnel are also receiving retraining on mine standards and safe working procedures.

The company replaced about 80% of the management at the mine in the last year, and some 50% of middle-management.
 

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