Anglo American Platinum to complete sale

Anglo American Platinum has confirmed that the sale of Union Mine and MASA Chrome to a subsidiary of Siyanda Resources had been completed.

Anglo sold its 85% interest in Union Mine and its 50.1% interest in MASA Chrome to a subsidiary of Siyanda. The sale was officially completed on 01 February 2018, when Siyanda will take over ownership, control and management of these operations.

Image credit: Siyanda Resources

“The Union Mine and Masa Chrome operations are quality assets which have long-term potential under Siyanda’s ownership and management,” says Lindani Mthwa, group chairman of Siyanda Resources


The upfront disposal proceeds of R400-million was received in the form of cash on 1 February 2018 and used to reduce net debt and further strengthen Anglo American Platinum’s balance sheet.

“In addition to the sales of Pandora and Rustenburg, with the completion of Union, Anglo has executed a core part of its strategy of repositioning the portfolio. This transaction will allow us to focus on our most competitive assets, which are largely open-pit and mechanised operations which will result in higher margin production, a smaller and more highly skilled workforce, safer operations and a less complex organization,” says Chris Griffith, CEO of Anglo.

In addition, a deferred consideration based on 35% of cumulative positive distributable free cash flow will be paid annually as an earn-out for a period of 10 years from the effective date of the transaction. The maximum cap on the deferred consideration is R6-billion. Anglo has no obligation to contribute towards any negative cash flow that may be generated by the assets post the disposal. Mthwa adds that Siyanda’s management team had extensive mining experience, which included experience at Union Mine.

“This transaction is mutually beneficial for all parties involved and, through our partnership with the Bakgatla-Ba-Kgafela and our employees, we believe that we will create a sustainable future for the operations.”


Siyanda will sell concentrate produced by Union Mine to Anglo for a period of seven years from the effective date of the transaction where after Anglo will toll treat concentrate for the remaining life of Union Mine, both on pre-agreed commercial terms.

“Our core operations will benefit from dedicated management attention, technical expertise as well as enabling us to focus our capital allocation,” adds Griffith.



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