Anglo American Platinum has divested its 50% stake in the Kroondal joint venture (JV), comprising the Marikana and the Kroondal pool-and-share agreements (PSA), to Sibanye-Stillwater, which holds the remaining 50% of the PSAs.
Kroondal's infrastructure was utilised to mine through the border into Sibanye Stillwater's Rustenburg operations resource.
This resulted in increased value for all parties involved, as Anglo American Platinum was able to generate cash flows from its 50% share of the remaining economic reserve of Kroondal earlier and at a lower cost of production (after optimising the mine plan to extract the resource from both the Rustenburg and Kroondal mining right areas).
The company processed this material through the pre-existing Kroondal purchase of concentrate arrangements.
Upon receipt of the complete 1.35 million 4E ounces, which is anticipated to occur in the second quarter of 2024, the disposal will become effective.
In exchange for R1 (0.05 US cents), Anglo American Platinum shall divest its 50% stake in the PSAs, transferring to Sibanye-Stillwater all assets and liabilities (including all closure costs and rehabilitation liabilities).
Additionally, if the currently unmined Merensky mineralisation, which is yet to be classified as a Mineral Reserve, is extracted in the future, the company will receive a deferred compensation of one Rand per tonne mined (the rate being subject to metal prices at the time of extraction).
“The sale of our interest in Kroondal to Sibanye-Stillwater represents a positive step towards simplifying Anglo American Platinum’s portfolio,” said Anglo American Platinum chief executive Craig Miller.
“We have expedited the effective date to allow us to focus our attention and resources on maximising the value [of] our core assets.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
