An arrangement has been agreed to in principle between JSE-listed Royal Bafokeng Platinum (RBPlat), Anglo American Platinum (Amplats), Rustenburg Platinum Mines (RPM) and Royal Bafokeng Resources (RBR), following the force majeure declared by Amplats under a disposal of concentrate agreement (Doca) between RBR and RPM.
RBR is a wholly owned subsidiary of RBPlat, and RPM is a wholly owned subsidiary of Amplats.
Amplats earlier this month said its Anglo Converter Plant would be unavailable during repair works to fix the Phase B unit, which would take about 80 days.
At the time, it said RPM would be unable to comply with its obligations in terms of the Doca during this period.
In terms of the arrangement currently being finalised with Amplats and RPM, RBR has resumed delivery of its concentrate to RPM.
Ownership will pass to RPM on materially the same terms and conditions as the pre-existing Doca but with delayed payment terms.
From March 6, all concentrate deliveries to RPM would be subject to newly agreed payment terms.
As soon as RPM has notified RBPlat that the ACP is operational, payment terms will revert to the terms contained in the initial Doca.
RBPlat said this was an acceptable arrangement. It added that it was pleased with the commitment demonstrated by Amplats and RPM to the partnership with RBPlat and to mitigating the impact of the force majeure.