Lonmin to buy Amplats out of Pandora joint venture for between R400m and R1bn
The Anglo subsidiary, meanwhile, will rent Lonmin’s Baobab smelter to make the most of its strategically crucial Mogalakwena mine
Lonmin will buy Anglo American Platinum’s 42.5% stake in the Pandora joint venture for at least R400m, while the world’s largest platinum producer will pay R46m a year for three years to rent Lonmin’s Baobab concentrator. Lonmin, the world’s third-largest platinum miner, owns a 50% stake in the Pandora operation, which is one of the joint ventures the Anglo American subsidiary has said it wants to exit as it streamlines its portfolio to shallow, mechanised mines with a smaller, more highly skilled workforce. The conditional sales and purchase agreement between the two companies would be paid for from 20% of the free cash the Pandora operation generated over the next six years, with the total payment pegged at between a R400m minimum and a R1bn maximum, the companies said on Friday. The Pandora mine generated 37,555oz of platinum last year for Lonmin, which has mines neighbouring Pandora. "This is an excellent strategic fit for Lonmin, which increases our exposure to a valuable asset...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.