Royal Bafokeng Platinum CEO Steve Phiri
Photo by: Creamer Media
JOHANNESBURG (miningweekly.com) – Black-controlled platinum mining company Royal Bafokeng (RBPlat) on Thursday announced that its joint venture partner Anglo American Platinum (Amplats) had agreed to accept R1.8-billion for the remaining 33% of the Bafokeng Rasimone Platinum Mine (BRPM).
Headed by CEO Steve Phiri, the JSE-listed RBPlat currently has 67% of the BRPM Joint Venture as well as management control.
RBPlat intends selling shares to investors for cash in part settlement of the purchase price, and settling the deferred amount in three equal payments over three years, also through possible share transacting.
Located on the western limb of the Bushveld Igneous Complex, in the North West province, BRPM is close to RBPlat’s other assets, which include the Styldrift I project, the Styldrift II exploration project, on which a prefeasibility study has been completed, and the Maseve concentrator plant.
Amplats, CEO Chris Griffith confirms, will retain its right to process 50% of the BRPM’s concentrate for the life-of-mine, and RBPlat will retain its five-yearly termination right on the remaining 50% of concentrate, with the earliest next termination being in 2022.
The proposed transaction, which is expected to be concluded in the third quarter of this year, provides RBPlat with an opportunity to enlarge its reserve base, and allows Amplats to direct capital towards its own projects, rather than to operations where it holds a minority interest.
The Merenksy-rich BRPM is described as being competitively positioned in the lowest quartile of the industry cost curve by RBPlat, which calculates that the price that has been accepted represents a 15% discount on “see-through” value.