Table of Contents
Sibanye-Stillwater, a multinational precious metal mining group led by South African businessman Neal Froneman, has agreed to buy a 50-percent stake in the Kroondal mine from Rustenburg Platinum Mines, a subsidiary of Anglo-American Platinum (Amplats).
The Froneman-led mining group will take full ownership of the low-cost, mechanized Kroondal operation, which is located in Rustenburg, South Africa’s most populous city in the North West province.
In addition to providing a boost to its operations, it revealed that the transaction will allow the Kroondal operation’s life to be extended until 2029, ensuring significant value creation for all stakeholders.
Sibanye-Stillwater presently operates the Kroondal operation, which is adjacent to and up-dip from the Rustenburg operation and the shallow Klipfontein open pit operation.
The pool and share agreement clause on the Krondal operation will be terminated upon the completion of the sale transaction, and Sibanye-Stillwater will be entitled to mine the remaining ore body and ore from the Rustenburg operation that can be accessed via the Krondal operation infrastructure.
According to Froneman, Sibanye-Stillwater’s CEO, the consolidation of these operations under a single owner will unlock significant value for all stakeholders by extending the operational life of the Kroondal operation, which was previously constrained by the existing agreement.
“We are unlocking the true potential of these adjacent mines by utilizing the mechanized and low-cost Kroondal operation to mine across the boundary with the Rustenburg operation,” Froneman said.
“This will accelerate the extraction of more remote parts of the Rustenburg operation orebody, sustain employment for more than 2,500 people until 2029 and ensure the creation of significant value for all stakeholders in the region,” he added.
The latest move comes nearly a week after the South African mining company canceled plans to acquire two mines in Brazil in a $1-billion deal as it seeks to expand its operating portfolio of green metals and related technologies.
The transaction was terminated due to a geotechnical event at Santa Rita that is reasonably expected to be material and adverse to Santa Rita’s business, financial conditions, operating results, properties, assets and liabilities.
