Baroka Tribal Mining’s unit Baroka Platinum is reportedly planning to acquire Atlatsa Resources’ 51% stake in Bokoni platinum mine in Limpopo province, South Africa.
A source was quoted by Reuters as saying that the company is preparing to offer up to ZAR1.8bn ($150m) for the purchase.
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The proposed acquisition is part of Baroka’s plan to take advantage of recent changes in the platinum mining sector.
A five-month miners’ strike last year significantly hit South African platinum producers, forcing them to sell under-performing and labour-intensive assets to improve profitability.
If a deal is finalised, Baroka will have its first production asset in South Africa where it currently relies on royalty payments.
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Anglo American Platinum (Amplats) owns the remaining 49% of the Bokoni project, which produced 170,000t of platinum group metals in 2014.
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By GlobalDataEarlier this year, Baroka offered ZAR3bn to acquire Amplats’ stake in the four-shaft mine.
Reuters cited Atlatsa spokeswoman Prudence Lebina as saying that the company has not received any offer for its Bokoni stake.
Meanwhile, Ga-Nkwana community members have blocked access to Bokoni mine forcing Atlatsa to pause production activities.
Lebina said the company is not aware of the reason for the protest; however, Atlatsa will consult the local leaders for information.
Image: Bokoni mine produced 170,000t of platinum group metals last year. Photo: courtesy of Atlatsa Resources Corporation.
