Anglo American Platinum’s subsidiary Rustenburg Platinum Mines and Sibanye-Stillwater’s subsidiary have fast-tracked a pivotal deal, granting Sibanye Rustenburg Platinum Mines full ownership of the Kroondal operation. This acquisition, effective as of November 1, came about after satisfying all regulatory approvals, including a nod from the Competition Commission and Section 11 consent under the Mineral and Petroleum Resources Development Act for the mining right transfer.
RPM has recently completed the sale of its 50% stake in the Kroondal pool and a share agreement with a subsidiary of Sibanye-Stillwater. The sale process was carried out successfully, with all necessary regulatory requirements met. This includes obtaining the required consent under the Mineral and Petroleum Resources Development Act for the transfer of mining rights and receiving approval from the Competition Commission.
The two companies have also concurred to forego the remaining condition of delivering 1.35 million ounces of the platinum group metals from Kroondal to RPM, updating several terms to maintain the deal’s economic essence.
As per the January 2022 sale agreements, Kroondal has tapped into Sibanye-Stillwater’s Rustenburg operations, generating earlier and lower-cost production cash flows for Amplats from the shared reserves.
This divestment becomes fully effective after the transfer of 1.35 million ounces of platinum group metals, projected for completion in the second quarter of 2024. Until then, Sibanye-Stillwater will compensate Amplats with some of Kroondal’s generated revenue.
Upon completion, Amplats will relinquish its 50% interest in the PSAs for a nominal R1, shifting all associated assets and liabilities to Sibanye-Stillwater. Amplats will continue processing Kroondal’s output under the existing terms until the fulfillment of the 4E-ounce delivery.
Sibanye-Stillwater CEO Neal Froneman highlighted the deal’s benefits, noting that unifying ownership accelerates resource extraction and extends the Kroondal operation’s lifespan, supporting thousands of jobs until 2029 and creating significant regional stakeholder value.
According to a report by Mining Weekly, Amplats CEO Craig Miller expressed that the sale aligns with the company’s strategy to sharpen its focus on core assets, streamlining the portfolio for enhanced value extraction.
