Amplats to sell Bokoni Mine to African Rainbow Minerals for R3.5bn
Anglo American Platinum (Amplats) has entered into a sales and purchase agreement (SPA) to sell its 100% stake in Bokoni Platinum Holdings to African Rainbow Minerals (ARM).
Anglo American holds 49% stake in the mine and its joint venture (JV) partner Atlatsa Resources Corporation has a 51% shareholding.
The SPA transaction, which is expected to be completed in 2022, will include employees and local communities in the new ownership structure alongside ARM, Amplats said in a SENS announcement.
Bokoni Platinum Holdings will receive an upfront cash consideration of R3.5bn for the Bokoni Mine located in Limpopo. The proceeds will be distributed to the JV partners in accordance with pre-existing commercial arrangements.
The mine has been on care and maintenance since 2017 following years of significant cash losses under difficult market conditions.
In 2019, the JV partners commissioned a study to evaluate options to restart the mine. They then decided to start a disposal process of their interests in Bokoni mine to a suitable buyer with capital to restart the mine, said Amplats.
In conjunction with entering into the SPA, Amplats has agreed to purchase of concentrate agreement with ARM. In terms of this agreement, Anglo American Platinum will purchase concentrate on commercially agreed terms from the Bokoni Mine for a period of 23 years from delivery of first concentrate, aligned with the current agreed life-of mine plan.
“The transaction consideration unlocks value from the investment entered into by Atlatsa and its shareholders in 2007, which include the local communities, to support value creation for historically disadvantaged South Africans through facilitated participation in the mining industry,” said Amplats.
CEO Natascha Viljoen said the company is pleased to have concluded an agreement for the disposal of Bokoni Mine to an established mining company like ARM. “In conjunction with our joint venture partner, it was important that Bokoni Mine was sold to an operator with the technical and operational capability and access to funding to ensure the restart and sustainable future for the mine,” said Viljoen.
She added that the restart of the mine by ARM is expected to benefit employees, host communities, broader stakeholders and the regional economy, and allow employees and communities to participate in a new ownership structure.
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