Motsepe may consider platinum bid

[miningmx.com] – PATRICE Motsepe, one of Africa’s wealthiest mining entrepreneurs, distanced his company African Rainbow Minerals (ARM) from bidding for Anglo American Platinum (Amplats) platinum assets that may be sold.

However, he said a transaction may be possible provided it was in “a totally separate structure” and that it “made commercial sense”.

Commenting in the opening to ARM’s full-year results, in which the group lifted headline earnings 10% to R4.1bn, Motsepe said: “ARM will definitely not look at platinum assets that Anglo Platinum is selling”.

He added, however: “We may through totally separate structure see whether there’s any roll we can play that makes commercial sense.
“We do recognise that we have broader obligation as a South African company to help with job creation and job maintenance. I emphasise that it must be a totally separate entity and make commercial sense”.

Any bid Motsepe constructs for Amplats’ mines would join a growing list of hopefuls which also includes Sibanye Gold and Royal Bafokeng Platinum who described his firm’s potential as: “It doesn’t hurt looking when your neighbour’s house is on sale”. Amplats also has the option of unbundling and listing the Rustenburg units.

Chris Griffith, CEO of Amplats, confirmed long-standing speculation in July that the Anglo American owned company would sell its Rustenburg shafts and its Union section, and added the Pandora joint venture with Lonmin in which it has a 49% share.

Asked if an investment in the platinum sector could be through Harmony Gold, in which ARM has a 14.6% stake, Motsepe said: “The Harmony board would have to discuss it, but I think Harmony should focus on PNG [Papua New Guinea] where we have a world class asset”.

Harmony Gold owns half of the Golpu project in PNG but last year took a decision to rescope the project with partner, Newcrest, following a decline in the gold price and because shareholders were wary of the large capital costs involved.

An revised study into Golpu is imminent and may involve corporate changes for Harmony.

“Harmony has an asset in Papua New Guinea that potentially gives it big growth,” Harmony CEO Graham Briggs told Miningmx in July.

“How does Harmony evolve out of that? Does it evolve into two separate companies or does it stay as one company?’ Briggs said.