Anglo American Platinum making progress on asset disposal programme in SA

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JOHANNESBURG, December 13 – Anglo American Platinum (Amplats) on Wednesday said that it has made significant progress on the re-positioning of its portfolio, continuing to move its production down the cost curve and creating a more value enhancing portfolio.

Amplats last year announced its intention to divest of assets which do not fit its long term strategy.

The asset disposal programme of non-core assets saw Rustenburg mines being was sold to Sibanye in November 2016, Bokoni in Limpopo placed on care and maintenance at the end of October, Union mines and MASA Chrome Company being sold to Siyanda Resources, and the Pandora joint venture to Lonmin Plc, as well as the sale of long-dated resources at Amandelbult to Northam Platinum.

Amplats received a cash consideration of R1 billion for the mineral resources within the Amandelbult mining right on December 6, which was used to reduce their net debt.

For the sale of 42.5 percent interest in loss-making Pandora joint venture to Lonmin, Amplats would receive a deferred cash payment of a minimum of R400 million and a maximum of R1 billion, based on 20 percent of free cash flow over six years.

Amplats will take full operational control of Lonmin’s Baobab concentrator for a three year period, allowing it to continue processing excess ore from Mogalakwena mine and pursue optimisation initiatives at the Baobab concentrator.

Amplats chief executive Chris Griffith, said the group had made significant progress in the repositioning of its portfolio with the disposal of its interest in Pandora, completing the disposal of Amandelbult and progressing the disposal of Union mines.

“We believe we have delivered transactions that are beneficial for all parties involved, enabling a sustainable future for the Pandora and Union mines,” Griffith said.

“The benefits of operational control over the Baobab concentrator will enable us to continue to unlock value at Mogalakwena mine, and the cash proceeds received from Northam will allow us to further reduce our net debt position. We will continue to focus on completing the disposal of Union and MASA, which is expected to occur in early 2018.”

 – African News Agency (ANA)