Anglo American Platinum (Amplats) is reportedly planning to float its South African mines around Rustenburg on the stock market instead of selling them, citing that it received low offers for the assets.
Under its plans, the South African mining company may get rid of its underperforming Union mine and three others that are located near Rustenburg later in June, according to a company spokeswoman.
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Senior unidentified Amplats source told Reuters: "It is definitely on the table now because the offers that are coming in just aren’t high enough."
According to a Johannesburg-based investment banker, Amplats received a few offers for all its mines but did not consider them due to their low value.
The company’s latest decision comes as part of its strategy to recover from a five-month strike that took place in 2014.
In February, the company evaluated offers for the assets from two shortlisted companies.
During the same month, Baroka Platinum offered $263m to acquire Amplats’ stake in Bokoni mine in the Limpopo province in South Africa.
Most of Amplats’s operations lie to the north-west and north-east of Johannesburg, with the majority of its operations taking place in the Bushveld Igneous Complex.
Image: Anglo American Platinum’s Union mine. Photo: courtesy of Anglo American.
