Rustenburg Platinum Mines (RPM) – a wholly-owned subsidiary of Anglo American Platinum (Amplats), has agreed to extend its disposal of concentrate agreement (Doca) with Royal Bafokeng Resources (RBR) – a wholly-owned subsidiary of Royal Bafokeng Platinum (RBPlat), to February 10, 2023.
This comes as RBPlat is currently the subject of a mandatory offer by Impala Platinum and makes provision for either 17% or 50% of Amplats’ bought concentrate.
The Doca between RPM and RBR was initially entered into on July 4, 2018, replacing a previous longstanding Doca, where RPM agreed to buy all of the platinum group metal concentrate produced by RBR.
The termination date of the Doca in respect of either 17% or 50% of the concentrate is August 11, 2024, provided that RPM gives notice of such termination on or before August 10 this year.
Failing to provide such notice would result in the Doca enduring for continuous rolling periods of five years, unless terminated in accordance with the terms stipulated in the Doca.
Going forward, RBR has agreed that RPM may deliver a termination notice in terms of the Doca at any time on or before February 10, 2023, on the basis that, if a termination notice is given on or before that date, the termination date of the Doca will remain August 11, 2024.