London - Anglo American Platinum (Amplats) is in talks with two South African entities to sell its labour-intensive Union mine, Chief Executive Chris Griffith said on Thursday, taking another step towards its goal of becoming a low-cost miner.
Amplats, a unit of global mining group Anglo American, kicked off the sale for its Union mine and concentrator in October 2014. It has said it was looking to sell the operation for around $200 million to $300 million.
“We are progressing with the sale... we shut down one section of the mine because it was loss-making, and over the past six months we have re-done the mine plans,” Griffith said in an interview with Reuters in London.
“We now have an investment case for Union, we are in conversation with two separate South African parties and Sibanye is not part of the negotiations,” he added, giving no further details.
Sibanye Gold, in the final process of buying Amplats' Rustenburg mines for R4.5 billion ($287 million), had expressed interest in Union, in the same district.
Amplats, which produces 40 percent of the world's platinum group metals, is pivoting its strategy on newer and more mechanised mines such as its open pit Mogalakwena, and removing unprofitable ounces following a record five-month strike in 2014.
The strike, pay increases and low commodity prices forced mining companies to cut thousands of jobs, sell mines and delay projects.
Griffith also said Amplats is in talks with partner Toronto-based Atlatsa Resources to sell its 49 percent stake in the Bokoni mine in northeast South Africa.
“It could be Atlatsa who takes 100 percent or a third party if that doesn't happen, but as of now we are in discussion with them as to how they can take the entire operation,” Griffith said.
“Union and Bokoni we would like to conclude this year but they may roll over into next year,” he added.
REUTERS