Anglo American Platinum (Amplats), part of the Anglo American group, has agreed to sell its Rustenburg platinum operations to South African gold producer, Sibanye Gold. The total consideration payable is a minimum of R4.5 billion, consisting of an upfront payment of R1.5 billion in cash or shares and a deferred consideration equal to 35% of the distributable free cash flows generated by the Rustenburg operations over a six year period, subject to a minimum nominal payment of R3 billion. The total maximum consideration payable is R20 billion.
In 2012, Amplats restructured the loss-making business and it now consists of the Bathopele, Siphumelele, and Thembelani (incl. Khuseleka) mining operations, two concentrating plants, an on-site chrome recovery plant, the western limb tailings retreatment plant and associated surface infrastructure located on the Western Limb of the Bushveld Complex, in South Africa.
With annual production of over 800 koz PGMs, the operations are the fifth largest PGM producer globally. Current PGM (4E) reserves comprise approximately 9.7 Moz within total resources of 88.8 Moz.
As part of the proposed deal, Sibanye will sell all concentrate produced by Rustenburg to Amplats until 31 December 2018, after which time the companies will enter into a toll treatment arrangement.
Amplats agrees to sell Rustenburg to South African gold producer: AAL