Northam CEO Paul Dunne
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum is marking its entry into platinum-group metals (PGM) recycling through an aggregate $10.7-million acquisition of PGM recycling equipment and property in the US.
Entering into binding transaction agreements, Northam will acquire multiple ceramic catalytic converter processing lines and ancillary equipment, including sampling and separation systems, transportation and a materials handling fleet from automotive catalysts PGMs recycler A-1 Specialized Services.
The deal will also see Northam acquire 30 acres of land, with some 301 000 square feet of buildings for warehousing, manufacturing and office space, surrounded by well-developed infrastructure, including roads and a direct rail connection.
“The transactions represent a low-cost entry by Northam into a key segment of the broader PGM market. Northam has secured an excellent asset base of strategic future importance,” said Northam CEO Paul Dunne in an update to shareholders on Friday.
“Northam will be able to participate in the growing demand for recycled PGMs from autocatalysts and maintain and develop a strategic footprint in North America,” he added.
The transactions are expected to close by September 1.