Eastplats sells Barplats to Chinese firm

190710 Aquarius Platinum at their Marikana operations.photo supplied

190710 Aquarius Platinum at their Marikana operations.photo supplied

Published Jun 29, 2016

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Johannesburg - Canada-based Eastern Platinum has become the latest company to divest platinum assets in SA after agreeing to sell a local subsidiary to a Chinese firm for $50 million.

In a statement on Wednesday, the Vancouver-based company said it would sell Barplats Mines, which holds the Crocodile River Mine, and associated intercorporate investments and loans, to China-based Hebei Zhongheng Tianda Platinum.

Crocodile River is located near Brits in the North West Province, but Eastplats suspended funding to the operation in 2013 due to several factors, including the continuing negative outlook in the global economic environment, the sustained weakness in platinum group metal pricing and the operating environment in South Africa.

The project comprises four mining sections, Maroelabult in the east, Zandfontein in the centre, Crocette in the west, and Kareespruit (to be developed) between Maroelabult and Zandfontein, notes Eastplats' website.

The deal is subject to the usual conditions and will be carried out in accordance with SA mining laws.

Read also:  Eastplats rebounds to narrow its losses

Eastplats will keep ownership of its Eastern Limb projects, which include the Mareesburg, Spitzkop and Kennedy’s Vale projects.

“We are pleased that HZT’s plans to inject foreign capital and the creation of much needed jobs will stimulate socio-economic development in areas surrounding the CRM mine.” said president and CEO David Cohen.

“We will retain our large and shallow eastern limb PGM [platinum group metals] project base. While the PGM sector remains under pressure, closing the transaction will leave Eastplats extremely well capitalised.”

Eastplats had previously agreed to sell all its South African assets in 2014, but that fell through due to a shareholder dispute at the acquiring company.

Other miners that have sold out of platinum include Aquarius Platinum and Anglo American Platinum, which is selling three Rustenburg mines. Both groups are selling to Sibanye Gold, which will become a serious player in platinum on the world stage.

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