Baroka to offer $385m for Amplats’ Bokoni mine stake

17 December 2014 (Last Updated February 20th, 2020 11:47)

South African platinum producer Anglo American Platinum (Amplats) has received a ZAR4.5bn ($385m) offer from Baroka Tribal Mining for its 49% stake in Bokoni mine.

Bokoni

South African platinum producer Anglo American Platinum (Amplats) has received a ZAR4.5bn ($385m) offer from Baroka Tribal Mining for its 49% stake in Bokoni mine.

Following a five-month strike earlier this year, platinum mining companies in South Africa are said to be on a restructuring drive and plan to divest under-performing and labour-intensive mining shafts.

Amplats has put Bokoni mine and other shafts around Rustenburg up for sale in an effort to switch to mechanised mining and reduce dependency on labour, reports Reuters.

Baroka is also set to acquire Amplats' 22.5% indirect stake in its Toronto-based joint venture partner Atlatsa Resources, the news agency reported. Reuters' data revealed that the stake is worth about $48m.

"Platinum mining companies in South Africa are said to be on a restructuring drive and plan to divest under-performing and labour-intensive mining shafts."

South Africa's state-owned pension fund Public Investment is supporting Baroka.

Atlatsa is said to own the remaining portion of Bokoni, which is a four-shaft mine producing 170,000oz of platinum group metals a year.

Amplats accounts for around 40% of the world's newly mined platinum and has eight mining operations in the Bushveld Complex, namely Bathopele, Dishaba, Khomanani, Khuseleka, Mogalakwena, Siphumelele, Thembelani and Tumela mines.

The company, which is currently developing the Twickenham Platinum mine, operates the Unki Platinum mine (100%) on the Great Dyke in Zimbabwe.


Image: Bokoni mine is located in north-east South Africa. Photo: courtesy of Atlatsa.