Baroka Platinum considers acquiring Atlatsa’s stake in Bokoni mine

11 May 2015 (Last Updated May 11th, 2015 18:30)

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.

Bokoni

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.

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.

"Baroka will have its first production asset in South Africa where it currently relies on royalty payments."

Anglo American Platinum (Amplats) owns the remaining 49% of the Bokoni project, which produced 170,000t of platinum group metals in 2014.

Earlier 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.