Atlatsa and Amplats finally give up on cash-draining Bokoni mine
Atlatsa Resources and Anglo American Platinum have finally lost patience with the perennially underperforming Bokoni mine, putting it into care and maintenance as part of a deal that will entail the platinum giant writing off the junior miner’s R4.2bn debt. After years of failed efforts to restructure the mine to be sustainably profitable and the financial assistance of Amplats, the Bokoni mine recorded R500m of cash outflow in the first six months of this year. "In the circumstances, the Bokoni joint venture partners are no longer able to continue funding losses at the mine with no reasonable short to medium term turnaround prospects," Atlatsa said in a note to investors after suspending morning trade in its JSE-listed shares.
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