[miningmx.com] – IMPALA Platinum (Implats) and Royal Bafokeng Platinum (RBPlat) have agreed to a new royalty scheme at RBPlat’s Bafokeng Rasimone Platinum Mine (BRPM) amid difficult market conditions for platinum mining.
Implats mines a portion of BRPM through the 6 and 8 shaft of its Impala Lease Area in Rustenburg, an agreement signed in 2010 in which Implats pays RBPlat 15% of revenue derived from mining the areas.
Today, however, the parties announced a shift in the basis for the royalty from revenue to net gross profit margin with a minimum royalty payment of 5% of revenue earned and a maximum royalty payment of 25% of revenue earned. The deal is effective from October 1, RBPlat said.
“The board of RBPlat believes that the terms of the amended royalty agreement align the interests of the two businesses and are therefore beneficial for the shareholders of RBPlat,” it said in an announcement to the Johannesburg Stock Exchange.
The terms and conditions of another royalty between the parties – the 20 shaft royalty agreement – remain unchanged at 17.5% of revenue, RBPlat said.
