Anglo American Platinum’s (Amplats) 100%-owned subsidiary Rustenburg Platinum Mines (RPM) has completed the divestment of its 33% interest in the Bafokeng Rasimone Platinum Mine joint venture (BRPM JV) in South Africa.
The 33% stake was acquired by the company’s joint venture partner Royal Bafokeng Platinum (RBPlat) for around R2.2bn ($154.63m).
In July this year, RPM signed a sale and purchase agreement with RBPlat’s wholly-owned subsidiary Royal Bafokeng Resources Proprietary (RBR).
As a result of the transaction, RBR has assumed complete control over the operation.
Under the terms of the deal, RPM will continue to hold the right to process 50% of the concentrate from the BRPM JV for the life of mine.
RBPlat will retain its termination right on the balance 50% of the concentrate every five years.
Anglo American Platinum CEO Chris Griffith said: “The completion of the sale of RPM’s 33% interest in the BRPM joint venture allows Anglo American Platinum to further simplify its portfolio and focus its capital allocation into own-managed mines and projects. Importantly, RPM will retain its right to purchase 50% of the BRPM JV’s concentrate for the life of mine.
“The Transaction allows RBPlat to increase its attributable resource and reserve base and furthers empowerment in the PGM industry, with RBPlat fully owning and operating low cost, high quality assets with attractive growth optionality at Styldrift.”
The total consideration payable for the transaction includes R1.863bn ($130.94m) agreed previously and repayment of RPM’s contributions into the BRPM JV amounting to R315m ($22.14m) between the signing of the deal and the completion.
RBR made an upfront cash payment of R555m ($40m) on the date of completion of the transaction.
Anglo American Platinum will receive the remaining payment in three equal tranches.
The company stated that the sale will allow it to focus on its own-managed mines and projects.
Apart from the Bafokeng Rasimone platinum mine, RBPlat operates the Styldrift project, the BRPM concentrator complex and the Maseve concentrator plant.