S.Africa’s Amplats to sell stake in two mines to rival Sibanye

Jan 31 (Reuters) – Anglo American Platinum (Amplats) (AMSJ.J) will sell a 50% interest in its Kroondal and Marikana operations in Rustenburg to the north-west of Johannesburg to Sibanye Stillwater , the platinum group metals miners (PGM) said on Monday.

Sibanye Stillwater would acquire the projects for a cash consideration of 1 rand ($0.0643), and all associated liabilities of the projects, including costs related to rehabilitation estimated at 415 million rand.

As part of the transaction, Sibanye would also deliver 1.35 million ounces of platinum concentrate from Kroondal to Amplats’ Rustenberg smelting operations.

Amplats says its Kroondal and Marikana operations had limited strategic value under the world’s leading PGM producer’s broader plans.

Sibanye, however, says the transaction will extend Kroondal’s life of mine to 2029 and save jobs.

Both mines have a combined workforce of over 30,000 people, Sibanye said.