JOHANNESBURG - Anglo American Platinum (Amplats) said on Thursday that it had completed the acquisition of both Glencore Operations South Africa 40.2 percent interest and Kagiso Platinum Ventures 9.8 percent interest in the Mototolo joint venture (JV) for a total consideration of R267.9 million.
This means that Mototolo will become a wholly-owned operation of Amplats with effect from Thursday. The Mototolo mine is a large platinum mine located in Burgersfort, Limpopo. Mototolo represents one of the largest platinum reserves in South Africa, having estimated reserves of 5.5 million ounces of platinum and it produces around 57,000 ounces of platinum per year.
The Mototolo JV is currently operated as a 50/50 joint venture between Anglo American Platinum and a partnership between Glencore (39%) and Kagiso Tiso Holdings Proprietary Limited (“KTH”) (11%
Amplats paid Glencore an upfront purchase consideration of R0.9 billion and a deferred consideration will be settled monthly over a six-year period and will be determined based on the rand platinum group metals prices over the Mototolo JV life of mine to 2024.
A total purchase consideration of R267 million was paid to Kagiso, with no further deferred consideration being payable.
Chris Griffith, chief executive of Amplats, said the transaction will unlock significant value and extend the life-of-mine by more than 30 years.
"The acquisition of the Glencore and Kagiso interests in the Mototolo JV results in Anglo American Platinum wholly-owning a mechanised, low-cost, high quality resource, creating another major PGM hub for the company," Griffith said.
"The transaction unlocks significant optionality for the company in its adjacent wholly-owned Der Brochen resource, and will increase the life-of-mine to over 30-years creating material value for Anglo American Platinum."
- African News Agency (ANA)