[miningmx.com] — ROYAL Bafokeng Holdings (RBH) CEO Niall Carroll on Tuesday sharply criticised ANGLO PLATINUM LIMITED for blocking the sale of the Bafokeng Rasimone Platinum Mine (BRPM), saying the platinum major’s conduct is indicative of a “tick the box” compliance mentality.
He said AngloPlat – which holds a 33% stake in BRPM – was able to veto the deal on the basis of an underlying clause in the partners’ JV agreements.
“We are frankly disappointed that the industry leader, which has dominated the platinum group metals landscape for decades, has chosen to frustrate our legitimate aspirations, even as a minority shareholder in a significant black-owned entity,” Carroll said at the Southern African Institute of Mining and Metallurgy’s International Platinum Conference at Sun City.
He said he hoped leading producers would move quickly from a “tick the box” compliance mentality to embracing and engaging in the realities of South Africa.
Carroll also abandoned the group’s reticence to identify the party that in September offered a bid for 100% of BRPM. He confirmed, as reported by Miningmx in September, that IMPALA PLATINUM HOLDINGS LIMITED made a “credible offer” which would have been in South Africa’s “national interest”.
“Given our significant shareholding in Implats and the contiguity of BRPM to the Impala Lease Area, there was clear logic for a combination of these two assets and a consolidation of RBH’s equity interests into one platinum producer,” said Carroll.
BRPM holding company Royal Bafokeng Platinum is set to list before the end of the year.
The listing plans were temporarily placed on hold following Impala’s offer for BRPM, but will now go ahead following AngloPlat’s rejection of the deal.
“As RBH, our objective is unashamedly to create value for our shareholders. One route to do that is clearly though the IPO process. This unexpected offer from Implats would, however, have allowed us to significantly advance our strategic agenda and in turn enabled the Royal Bafokeng Nation to accelerate spending on its social development programmes,” he said.
Carroll said the offer was credible and the premium price offered the chance to unlock value for shareholders.
A deal would have also accelerated the Bafokeng’s social spending agenda by switching shares in a growing, capital hungry business into shares in Implats, which is a more mature, dividend paying company.
“I believe that there are some major unresolved strategic issues facing the industry and that the industry will require a radically different mind-set if it is not to have a draconian solution imposed on it by government.”
AngloPlat corporate communications manager Thabisile Phumo said the group will review Carroll’s statement and issue a response on Wednesday, if necessary.
“We would like to refer you to the announcement by RBPlat yesterday that the listing is going ahead as orginally planned. We are fully supportive of that process,” she said.
