Northam Platinum buys Eland mine from Glencore
Revenue and operating profit grew, but it still posted a bottom-line loss, and production was hit by labour unrest
Northam Platinum’s strategy of buying additional mines, as its strives to become a 1-million ounce a year platinum group metals producer, netted it Glencore’s Eland Platinum mine for R175m cash. As part of the agreement, Glencore will have exclusive rights to market and sell all the chrome Northam produces in exchange for the sale of its Eland mine and a concentrator that can treat 250,000 tonnes of ore a month. It also comes with a 100-piece mining fleet, some of which Northam will divert to its new Booysendal South mine, which was the old Everest South mine it bought from Aquarius Platinum to unlock its large Booysendal tenement near Steelpoort in Limpopo. The Booysendal mine increased its chrome concentrate output by 45% in the six months to end-December, to 138,635 tonnes. Eland has a resource of 21.3-million ounces of four platinum group metals near Brits in the North West. "The Eland transaction provides Northam with a medium-term option over a large, shallow resource with ful...
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