JOHANNESBURG (miningweekly.com) – Platinum group metals (PGMs) producer Lonmin has taken full ownership of the Pandora joint venture (JV), after having acquired platinum miner Anglo American Platinum’s (Amplats’) 42.5% stake and mining and investment exploration company Mvelaphanda Resources’ 7.5% interest in the JV.
Pandora mines PGMs from the Upper Group 2 and Merensky reefs underlying the Pandora mining area.
Lonmin on Wednesday said that assuming 100% ownership of Pandora will “unlock significant synergies for Lonmin”.
It will enable Lonmin to extend mining at its Saffy shaft without having to spend R2.6-billion in capital expenditure, of which R1.6-billion would have been required over the next four years.
It will also provide Lonmin with significant future opportunities to develop Pandora’s potential.
Lonmin CEO Ben Magara said the full ownership of Pandora is an “excellent strategic fit” for Lonmin, equipping the miner with a valuable contiguous asset with long-term development potential.