The Competition Commission has recommended to the Competition Tribunal that it approve Rustenburg Platinum Mines’ (RPM’s) acquisition of the Mototolo Joint Venture (Mototolo JV) and the movable assets of the Mototolo chrome recovery circuit.
The commission found that the proposed transaction was unlikely to result in a substantial prevention and lessening of competition. It also found that the proposed transaction was unlikely to raise employment concerns or public interest concerns.
RPM has three primary smelting operations in Limpopo and North West that treat pyrometallurgical concentrates. These smelters produce furnace matte, which are then upgraded to a concentrator matte that is rich in platinum-group metals (PGMs) and base metals at the Rustenburg base metals refinery.
The main function of the refinery is to separate precious metals from base metals using milling and magnetic concentration. The PGM concentrate procured by RPM contains platinum, palladium, rhodium, iridium and ruthenium, as well as certain base metals.
The Mototolo JV was established in 2005. The Mototolo platinum mine is located in Burgersfort, Limpopo. The concentrate that is produced at the mine contains PGMs and certain byproducts such as gold, nickel, copper, chrome and cobalt.
All of the ore mined at the Mototolo JV is currently processed through a concentrator that is operated by RPM.
The chrome recovery circuit, which is operated by diversified miner Glencore, processes tailings that are produced from the concentrator.
RPM sells its undivided half share of the chrome to Glencore.