[miningmx.com] — IMPALA Platinum (Implats) appears to be the company bidding to buy the Bafokeng Rasimone Platinum Mine (BRPM) from owners Anglo Platinum (AngloPlat) and Royal Bafokeng Platinum (RB Plat).
Implats put out a cautionary notice on Sens that it had “entered into discussions regarding a potential transaction’ shortly after cautionary notices were issued by AngloPlat and RB Plat that they had received and were considering an offer for BRPM.
Implats CEO David Brown said, “there is nothing I can add to our cautionary statement.’
RB Plat CEO Steve Phiri commented, “my mouth is shut. Any comment has to come from my two shareholders – AngloPlat or Royal Bafokeng Holdings (RBH). “
RB Plat at this stage is still a wholly-owned subsidiary of RBH.
AngloPlat CEO Neville Nicolau was not immediately available for comment. RBH CEO Niall Carroll declined to identify the bidder.
Should it go through the deal could be part of a broader consolidation in the platinum sector because it could involve a swap of assets between Implats and AngloPlat as part payment for AngloPlat’s stake in BRPM.
RB Plat owns 67% of BPRM while AngloPlat owns the balance of the company. BRPM’s assets include the adjacent Styldrift deposit where construction of a mine has just begun.
Styldrift has been described by Phiri as, “the best, undeveloped Merensky Reef platinum deposit left in South Africa.’
Phiri told Miningmx in May that, ” Styldrift is big, it’s high grade and it’s shallow. The reefs are easy to mine because they are consistent and flat dipping. It’s a quality asset and we have 25 to 30 years of life left on the Bafokeng Rasimone mine which will provide the cash flow to develop it.’
According to a platinum analyst Implats could well swap its Marula mine on the eastern limb of the Bushveld Complex for AngloPlat’s stake in BRPM although it would also have to kick in some cash to compensate for the likely difference in values.
The analyst commented, “Implats is the obvious buyer for BRPM because it has major existing infrastructure adjacent the mine.
“Acquiring BRPM would remove the need for Implats to carry out the development of its deep and highly expensive 18 Shaft.
” Implats would also be able to complete the development of Styldrift more cheaply than RB Plat because it would not need to build a new concentrator. Implats has sufficient spare capacity at its existing nearby operations.
“Marula would fit in well with AngloPlat because it could be combined with AngloPlat’s other operations in that region such as Twickenham.’
That assessment provides an answer to the obvious question of why AngloPlat would help out arch rival Implats by agreeing to sell it such an important platinum asset.
If Implats is the buyer it would also answer another glaring question which is this; why would the Royal Bafokeng agree to sell their controlling stake in the BRPM assets given their openly stated, huge ambitions to grow in the platinum business?
Phiri said in May that RB Plat was “the kingmaker’ in the platinum sector and that, “we know that everybody wants to deal with us. We hold the key to the future of platinum mining in our area and we love that.’
But RBH is the largest shareholder in Implats holding a 13.2% stake and it would likely take Implats equity for its controlling interest in BRPM which would bump its stake up considerably – something RBH has long been keen to do.
Phiri stressed that should the offer not be accepted then the initial public offering (IPO) of RB Plat on the JSE would proceed as planned.
He said the listing was not affected by the concerns voiced recently by the JSE regarding security of tenure over mining rights which had led the JSE to delay the listing of Galaxy Gold.
He commented, “we are all ready to go on that. Everything is in place. We have completed all our Section 11 transfers and have our new order mining rights.’
The writer owns shares in Impala Platinum
