Northam Platinum has more than R2bn worth of metal waiting to be processed and sold as its mining volumes exceeded the capacity at its smelter, a short-term problem that will be addressed with its newly commissioned furnace. In the 2018 financial year to end-June, Northam notched up record capital expenditure of R3.8bn as it laid the building blocks for growth, most notably a R1bn deal with Anglo American Platinum for a block of land next to its deep-level Zondereinde mine, the R175m purchase of the whole of Eland Platinum from Glencore, and buying a US platinum group metals (PGM) recycling business. Northam is one of the few platinum miners doing deals in SA in the prevailing market of weak and uncertain platinum prices. Impala Platinum and Lonmin, two of the world’s largest sources of the mined metal, are both closing their old and unprofitable mines, with the combined number of job losses set at a projected 25,600 people. Financial structure Northam has an empowerment financial s...
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.