Black-controlled platinum mining company Royal Bafokeng (RBPlat) last week announced that its joint venture partner, Anglo American Platinum (Amplats), had agreed to accept R1.8-billion for the remaining 33% of the Bafokeng Rasimone Platinum Mine (BRPM).
Headed by CEO Steve Phiri, the JSE-listed RBPlat currently owns 67% of the BRPM Joint Venture and also has management control.
RBPlat intends selling shares to investors for cash in part settlement of the purchase price, and settling the deferred amount in three equal payments over three years, as well as through possible share transacting.
Located on the western limb of the Bushveld Igneous Complex, in the North West province, the BRPM is close to RBPlat’s other assets, which include the Styldrift I project, the Styldrift II exploration project, on which a prefeasibility study has been completed, and the Maseve concentrator plant.
Amplats, CEO Chris Griffith confirms, will retain its right to process 50% of the BRPM’s concentrate for the life-of-mine, and RBPlat will retain its five-yearly termination right on the remaining 50% of concentrate, with the earliest next termination being in 2022.
The proposed transaction, which is expected to be concluded in the third quarter of this year, provides RBPlat with an opportunity to expand its reserve base, and allows Amplats to direct capital towards its own projects, rather than to operations where it holds a minority interest.