Anglo American Platinum's wholly-owned subsidiary Rustenburg Platinum Mines has entered into an agreement to acquire Glencore’s stake in the Mototolo joint venture (Mototolo JV).
Image: The acquisition is anticipated to secure a major infrastructure for Anglo American Platinum. Photo courtesy of Anglo American Platinum.
Currently, the Mototolo JV is operated as a 50/50 joint venture between Anglo American Platinum and a partnership between Glencore and Kagiso Tiso Holdings Proprietary.
While Glencore owns 39% stake in the Mototolo JV, Kagiso Tiso Holdings Proprietary holds 11%.
Anglo American Platinum said that the total acquisition cost will be capped at R22bn ($1.6bn).
The acquisition is expected to position Anglo American Platinum as the majority owner of a high-quality, fully mechanised operation.
Anglo American Platinum CEO Chris Griffith said: “The acquisition of Glencore’s stake in the Mototolo JV increases Anglo American Platinum’s interest in a mechanised, low-cost, high quality resource, creating another major PGM hub for the Company.
“The Transaction unlocks significant optionality for the Company in its wholly-owned Der Brochen resource.”
Operating under a mining right covering 9km2, the Mototolo operation is 30km west of Burgersfort in Limpopo in the Eastern Limb of the Bushveld complex.
The acquisition is anticipated to secure a major infrastructure for Anglo American Platinum by providing a value-enhancing optionality between the Mototolo JV area and the company’s adjacent wholly owned Der Brochen resource.
Anglo American Platinum said: “By combining the Mototolo JV area with the downdip and adjacent Der Brochen resource, the life-of-mine is also significantly extended from the current c.5 year life of mine, to well in excess of a 30 year life of mine.”
The transaction is expected to be completed in the fourth quarter of 2018.
Earlier this month, Rustenburg Platinum Mines (RPM) accepted an offer from its joint venture partner Royal Bafokeng Platinum (RBPlat) to acquire its 33% stake in the Bafokeng Rasimone Platinum Mine joint venture (BRPM JV) for R1.863bn ($135m).
Anglo American Platinum said that exiting the BRPM JV enables it to focus its capital into its own-managed mines and projects.