Amplats’ asset disposals should be unaffected by latest DMR move

The government notice published on July 18 aimed at prohibiting the change of control of existing mining and prospecting rights should not affect the final restructuring steps underway at Anglo American Platinum (Amplats) according to CEO Chris Griffith.

Having already sold its former Rustenburg division to Sibanye, Amplats is still in the process of disposing of its Union Section mines to Siyanda Resources along with selling its stake in the Pandora joint venture to Lonmin and its “long-dated Amandelbult resources” to Northam Platinum.

Speaking at a presentation of the group’s interim results at the JSE today Griffith commented, “the Minister in his announcement said that the DMR (Department of Mineral Resources) would continue to process the Section 11s that were already in play – so that covers Pandora and the long-dated Amandelbult resources.

“The one process that is at risk is the Union deal where we should be submitting the Section 11 application in the next week or so but the Minister has left open the door in that there can be written submissions made to the DMR and – given that the Union transaction ticks all the transformation boxes – we believe there is a case to be made even under the current environment. “

Asked about the meeting held on July 14 between Minister Mosebenzi Zwane and the Platinum Leadership Forum – consisting of the CEOs of the main platinum mining companies – Griffith replied the focus of the meeting was to “make sure the Minister understood the difficulties the platinum industry is in. It had nothing to do with the Mining Charter and it was not a veiled threat around the Mining Charter.

“It is very important that the regulator of the industry understands the position that 70% of the industry is loss-making and the likely impact of this on businesses going forward.”

Griffith added the meeting also covered other industry issues such as the introduction of a platinum coin equivalent of the Krugerrand.

He commented, “ it is mind-boggling that we still do not have one after all these years. We have been able over the past few years to get one in Austria and there is renewed effort going in behind the platinum eagle in the United States while there has been a recent launch of platinum coins in the UK.

“We keep pointing out to our government that – why is it that others see the value in this but where the home of platinum is – we don’t. We still believe there is potential ……..and the Minister should be leading that charge.

“ If he’s really interested in the future of platinum mining in South Africa he should be standing side-by-side knocking down the doors of Treasury to say – come on guys, there are things that you can do.

“The Minister indicated there were some things he could help with and so it was a positive meeting.”