ANA
Premium Journalist
1 minute read
19 Oct 2016
10:40 am

Sibanye completes acquisition of Rustenburg operations from Amplats

ANA

Sibanye launched back-to-back bids to buy Amplats’ Rustenburg mines.

BHP Billiton/AFP/File / BHP Billiton
BHP Billiton's copper/uranium/gold/silver processing plant near the Olympic Dam mine in South Australia, on February 9, 2012

Sibanye Gold on Wednesday announced that it would be taking over ownership, control and management of the Rustenburg Platinum Mines from November 1 following its unconditional fulfilment of all regulatory requirements to purchase the Rustenburg operations from Anglo American Platinum (Amplats).

In a separate statement, Amplats also confirmed the announcement.

This follows, among other things, the granting of consent in terms of Section 11 of the Mineral and Petroleum Resources Development Act for the sale by Rustenburg Platinum Mines of the Mining Right and the Prospecting Right to Sibanye Rustenburg Platinum Mines.

Sibanye’s chief executive, Neal Froneman, welcomed the receipt of the Section 11 consent from the Department of Mineral Resources which was the last regulatory condition outstanding for the takeover.

“We look forward to now incorporating the Rustenburg Operations into our Platinum Division, which will allow us to realise cost savings across the Group and operational synergies to create a sustainable Platinum Division and to unlock value for the benefit of all stakeholders,” Froneman said.

“This Transaction is consistent with Sibanye’s strategy to grow its business in order to sustain its position as an industry leading dividend paying company.”

Sibanye, already regarded as the leading producer of South African gold, last year launched back-to-back bids to buy Amplats’ Rustenburg mines for at least R4.5 billion and the whole of its neighbour, Aquarius Platinum, consisting of Kroondaal, Mimosa, Marikana Platinum Mine and Platinum Mine retreatment facility.

The Rustenburg Mines currently comprise of three mines, Bathopele, Thembelani and Siphumelele, and two concentrating plants.

The two mergers were approved by the Competition Commission with conditions that included that there be no retrenchments as a result of the deal, and that merging parties maintain the black economic empowerment (BEE) policy presently in place at both mines to protect small business suppliers.