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

Credit: REUTERS/Siphiwe Sibeko

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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 SSWJ.J, 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.

($1 = 15.5560 rand)

(Reporting by Nelson Banya in Harare and Shanima A in Bengaluru; Editing by Rashmi Aich, Promit Mukherjee and Louise Heavens)

((shanima.a@thomsonreuters.com; (Direct: +91 77 6034 7399 );))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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