Anglo American Platinum has completed the acquisition of both Glencore Operations South Africa Proprietary’s 40.2% stake and Kagiso’s 9.8% interest in the Mototolo joint venture.
Image: Anglo American Platinum completion stake acquisition in Mototolo joint venture. Photo courtesy of rawpixel on Unsplash.
With effect from 1 November 2018, Mototolo will become a wholly-owned operation of Anglo American Platinum.
The upfront purchase consideration to Glencore is c.R0.9 billion and a deferred consideration will be settled monthly over a six-year period and will be determined based on the Rand PGM prices over the Mototolo JV life of mine to 2024.
A total purchase consideration of R267 million was paid to Kagiso, with no further deferred consideration being payable.
Anglo American Platinum CEO Chris Griffith said: “The acquisition of the Glencore and Kagiso interests in the Mototolo JV results in Anglo American Platinum wholly-owning a mechanised, low-cost, high quality resource, creating another major PGM hub for the Company.
“The Transaction unlocks significant optionality for the Company in its adjacent wholly-owned Der Brochen resource, and will increase the life-of-mine to over 30-years creating material value for Anglo American Platinum”
Source: Company Press Release