Royal Bafokeng takes mine control

I-Net Bridge | Fri, 11 Dec 2009 11:09

[miningmx.com] -- ROYAL Bafokeng Resources (RBR) is officially the majority owner of the Bafokeng Rasimone Platinum Mine (BRPM) Joint Venture, Anglo Platinum (AMS) and Royal Bafokeng Holdings (RBH) said on Friday.

This follows an agreement between Anglo Platinum and RBH, the investment arm of the Royal Bafokeng Nation, to restructure the BRPM Joint Venture.

The transaction, which was announced in October 2008, became unconditional and effective on Monday this week.

"The purpose of the restructuring transaction is to create an independent, listable, broad-based black empowered operating platinum-focused company which will unlock value for its stakeholders through optimised extraction and growth in the platinum group metals industry," the companies said in a statement.

The BRPM JV restructuring transaction involves a change in the participation interests of the joint venture from that of joint control where RBR held 50% and Anglo Platinum's Rustenburg Platinum Mine held 50% to RBR holding a majority interest of 67% and Rustenburg Platinum Mine the remaining 33%.

RBR is a subsidiary of a newly formed company within the RBH Group of companies that has been resourced with an experienced and focused management team over the past 12 months.

Management control will transfer to the new company on the January 4, 2010. A brand and name for the new company will be announced early in 2010.

After transfer of management control to the new operator, RPM and RBR will remain the only partners in the joint venture.

On the December 7 this year RPM exchanged 17% of their interest in the BRPM JV for a 25% interest in this new company, which is to be listed within 24 months, subject to market conditions.

Until the listing Anglo Platinum retains an effective 50% economic interest.

The BRPM JV produces approximately 180,000 platinum ounces per annum and includes the 2.4 billion rand Merensky Phase II Project, as well as the 200,000 platinum ounces per annum, 8.1 billion rand adjacent Styldrift Project.

RBH CEO Niall Carroll said the holding company believed the enhanced focus of a dedicated management team, supported by strong empowerment credentials and a solid capital structure, would unlock significant sustainable value for all stakeholders.

"We look forward to the culmination of our stated intention to create an independently listed black-controlled PGM producer through the listing of NewCo on the Johannesburg Stock Exchange," said Carroll.

Anglo Platinum CEO Neville Nicolau said the restructuring marked the fulfilment of the company's commitment towards facilitating the creation of an independently controlled and managed, black-empowered platinum group metals producer.