Sibanye’s purchase of the Amplats Rustenburg mines is now a done deal
Sibanye Gold will take over the Rustenburg platinum mining operations from Anglo American Platinum at the start of November, after both companies told investors the deal had become unconditional. SA’s largest domestic gold producer and the world’s largest platinum miner were waiting for approval from the Department of Mineral Resources to transfer the ownership of three mines, two concentrating plants, a chrome recovery plant and a tailings project to Sibanye, making it the world’s fifth-largest producer of platinum group metals. Sibanye will pay Amplats R1.5bn up front in cash or shares, and then at least R3bn more based on 35% of free cash flows generated from the Rustenburg operations over a six-year period, according to the transaction terms announced in September last year. There was some concern in certain quarters that Sibanye CEO Neal Froneman’s demands for President Jacob Zuma to vacate office and his outspokenness on a variety of issues could delay the transaction. But the...
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