Amplats CEO Chris Griffith
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Platinum miner Anglo American Platinum (Amplats) is making significant progress in repositioning its portfolio.
This has, thus far, enabled the miner to move its production down the cost curve, thereby resulting in a more value enhancing portfolio.
In line with its intention to divest of assets which do not align with its long-term strategy, Amplats completed its exit from its Rustenburg operation on November 1 and placed the Bokoni mine on care and maintenance at the end of October.
The disposal of Amplats’ 42.5% stake in the loss-making platinum group metals-producing Pandora joint venture has been completed, with the shares being sold to Lonmin for a deferred cash payment of no less than R400-million and no more than R1-billion – both in nominal terms.
The sale is based on 20% of free cash flow over six years; and the use of, and full operational control of, Lonmin’s Baobab concentrator for a three-year period, which started on December 1.
Assuming operational control of the Baobab concentrator will allow Amplats to continue processing excess ore from the Mogalakwena mine and to pursue enhanced initiatives at the concentrator.
Further, Amplats reports that the disposal of mineral resources within the Amandelbult mining right to Northam Platinum was completed as of December 6, with Amplats having received R1-billion in cash, which was used to reduce its net debt.
Meanwhile, the disposal of Amplats’ 85% interest in Union mine and its 50.1% interest in MASA Chrome Company to Siyanda Resources is on track.
The parties have made progress in fulfilling the conditions precedent, and have obtained approval from the South African competition authorities and consent in terms of Section 11 of the Mineral and Petroleum Resources Development Act.
Amplats CEO Chris Griffith says the company has made significant progress in the repositioning of its portfolio. “We believe we have delivered transactions that are beneficial for all parties involved, enabling a sustainable future for the Pandora and Union mines.”
“We will continue to focus on completing the disposal of Union and MASA, which is expected to occur in early 2018,” he adds.