JOHANNESBURG (miningweekly.com) – Platinum miner Anglo American Platinum (Amplats) has completed the necessary conditions relating to the sale of its 85% interest in the Union mine and its 50.1% interest in MASA Chrome Company, by its wholly owned subsidiary Rustenburg Platinum Mines, to a subsidiary of Siyanda Resources.
The effective date of completion is February 1, when Siyanda will take over ownership, control and management of these operations.
The upfront disposal proceeds of R400-million will be received in the form of cash and will be used to reduce net debt and further strengthen Amplats’ balance sheet.
“Amplats has executed a core part of its strategy of repositioning its portfolio. This transaction will allow us to focus on our most competitive assets, which are largely openpit and mechanised operations which will result in higher-margin production, a smaller and more skilled workforce, safer operations and a less complex organisation,” CEO Chris Griffith said in a statement on Friday.
In addition, a deferred consideration based on 35% of cumulative positive distributable free cash flow will be paid yearly as an earn-out for a period of ten years from the effective date of the transaction. The maximum cap on the deferred consideration is R6-billion.
Siyanda will sell concentrate produced at the Union mine to Amplats for seven years from the effective date of the transaction, whereafter Amplats will toll treat concentrate for the remaining life of the mine.