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South Africa’s Competition Tribunal has approved the acquisition of the Bokoni Platinum Mine by African Rainbow Minerals (ARM), a South African diversified mining group led by billionaire businessman Patrice Motsepe.
The tribunal’s regulatory approval comes nearly seven months after the Motsepe-led mining juggernaut announced the R3.5-billion ($210 million) acquisition of the Bokoni Platinum Mine, a joint venture owned by Johannesburg-based Anglo-American Platinum (Amplats) and Toronto-based Atlatsa Resources Corporation.
In line with the regulatory approval, ARM announced in a press release obtained by Billionaires.Africa that the conditions precedent to the $210-million transaction have now been met, and the transaction has become unconditional.
The mining company also announced that the multimillion-dollar transaction will go into effect on Sept. 1 when the Bokoni Platinum Mine will become an ARM wholly owned subsidiary.
The mine’s integration into ARM’s broad-based mining portfolio aligns with the group’s investment and operational strategies, which include purchasing ailing and low-producing gold and precious metal mine shafts and converting them into high-producing, profitable mines.
However, the sale of the mine is part of a strategic divestment strategy for Amplats and Atlatsa Resources, which are on the other end of the $210-million deal. Both companies seek to create value from their existing portfolios of assets, while unlocking shared wealth for shareholders.
To keep the mine operational, ARM announced that it will invest R5.3 billion ($334 million) per year in the mine’s development.
The investment will help the company become a “significant” global primary PGM manufacturer, with an annual target of more than 1.2 metric ounces (on a 100-percent basis) and 650,000 ounces (on an attributable basis) by 2026.
