KEY POINTS
- Mantengu acquires dormant Blue Ridge Platinum Mine.
- Communities and employees to share in mine’s success.
- Feasibility study to explore underground mining potential.
AltX-listed Mantengu Mining seizes a platinum group metals (PGMs) and chrome mining opportunity by acquiring the dormant Blue Ridge Platinum Mine. The deal involves PGMs major Sibanye-Stillwater, the State-owned Industrial Development Corporation (IDC), and the Development Bank of Southern Africa (DBSA).
Mantengu secures Blue Ridge Platinum Mine
Mantengu CEO Michael Miller said, “This would not have been possible without the support of Sibanye-Stillwater, the IDC, and DBSA.” His statement accompanied a Stock Exchange News Service announcement on Thursday, Oct. 10. Mantengu, which focuses on investments in the mining, mining services, and energy sectors, acquired the loans owed by Blue Ridge for a nominal amount.
Blue Ridge currently owes more than R1.1 billion to creditors, including Sibanye-Stillwater, the IDC, and DBSA. Sibanye-Stillwater acquired 50% of Blue Ridge in 2016 through its acquisition of Aquarius Platinum, with the remaining 50% held by Imbani Platinum SPV. Located in South Africa’s Limpopo province, Blue Ridge is a UG2 PGM mine with an integrated ore processing plant. The mine was placed on care and maintenance in 2011 by Aquarius.
Operations at Blue Ridge set to resume under Mantengu’s management
“Core to our investment decision was Mantengu’s desire to create jobs and strengthen local empowerment,” Miller said.
According to a report by Mining.com, Sibanye-Stillwater CEO Neal Froneman endorsed the transaction structure, which ensures direct equity participation for communities and employees in Blue Ridge.
According to a report by Mantengu Chairperson Jonas Tshikundamalema the mine is poised to become a sustainable and profitable asset that will support the local economy.
Following the acquisition, Mantengu will initially take ownership of 100% of Blue Ridge’s ordinary shares and debt claims. The company will distribute 30% of the ordinary shares to strategic empowerment partners and allocate 5% to newly formed employee and community trusts, ensuring local communities and employees share in the mine’s success.
Mantengu plans a phased investment strategy for Blue Ridge, which includes one million tonnes of chrome and PGM tailings. The initial investment will focus on processing plants and equipment to extract up to 375,000 tonnes of chrome concentrate and 35,000 ounces of PGMs at a low cost.
Additionally, Mantengu will invest in a bankable feasibility study, expected to take 18 months, to explore the viability of resuming underground UG2 mining operations. If found economically feasible, Mantengu intends to pursue underground mining at Blue Ridge, which supports mechanized mining.
“This isn’t just a mine acquisition; it’s an investment in the future of our communities and the prosperity of our nation. We believe in South Africa’s resource potential and the power of innovative, sustainable business practices to unlock it,” Tshikundamalema said.
