Sibanye-Stillwater buys out Amplats 50% stake in Kroondal for R1

Sibanye-Stillwater will buy Amplats stake for R1 and in exchange take on the mine's rehabilitation, estimated at R415 million. Picture: Supplied

Sibanye-Stillwater will buy Amplats stake for R1 and in exchange take on the mine's rehabilitation, estimated at R415 million. Picture: Supplied

Published Feb 1, 2022

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ANGLO American Platinum (Amplats) has agreed to sell its 50 percent share in the Kroondal mine to Sibanye-Stillwater for the grand sum of R1, in a deal that will double its lifespan, sustaining 2 500 jobs until 2029.

By 4pm Amplats share price soared 4 percent to R1851.92, while Sibanye-Stillwater’s shares were up 1.61 percent at R55.56.

Sibanye-Stillwater and Anglo Amplats have a 50/50 percent share in Kroondal. The deal will nullify the venture, and Sibanye-Stillwater will expand its operations from the low-cost mechanised Kroondal operation in Rustenburg.

Amplats said yesterday that is was pleased to sell its assets due to the mine’s short lifespan.

Sibanye-Stillwater said yesterday it would buy Amplats’s stake for R1 and in exchange take on the mine's rehabilitation, estimated at R415 million.

Amplats said as the result of the deal the mining firm would generate cash flows from its 50 percent share of the 1.35 million 4E ounces by the end of 2023, at a lower cost of production, after optimising the mine plan to extract the resource from both the Kroondal and Rustenburg mining right areas, and under the pre-existing Kroondal purchase of concentrate terms.

Amplats would continue to process the concentrate produced from the Kroondal concentrators until 2026 under the toll-and-purchase agreement.

Amplats chief executive Natascha Viljoen said: “By enabling Kroondal to mine through the boundary at Sibanye-Stillwater’s Rustenburg operations, we will extract our attributable share of the Kroondal reserves more quickly and efficiently than under the previous mine plan, unlocking greater value for Anglo American Platinum and Sibanye-Stillwater. This transaction will also allow for the Kroondal life-of-mine to be extended under Sibanye-Stillwater’s ownership, sustaining employment at the operation for longer.”

Sibanye-Stillwater chief executive Neal Froneman said: “We welcome this mutually beneficial transaction which, through the full consolidation of these operations under a single owner, will unlock significant value for all stakeholders by extending the operating life of the Kroondal operation, which as a standalone operation was constrained by the existing PSA agreement.

“We are unlocking the true potential of these adjacent mines by utilising the mechanised and low-cost Kroondal operation to mine across the boundary with the Rustenburg operation. This will accelerate the extraction of more remote parts of the Rustenburg operation orebody, sustain employment for more than 2500 people until 2029 and ensure the creation of significant value for all stakeholders in the region,” he said.

The deal was conditional on all the regulatory approvals, including Competition Commission approval and consent in terms of the Mineral and Petroleum Resources Development Act, Sibanye-Stillwater said.

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