Anglo American Platinum completes acquisition of Glencore's assets
The world's largest platinum miner owns the Mototolo joint venture from November 1.
Anglo American Platinum, the world’s largest platinum miner, said it has completed the acquisition of Glencore’s stake in the Mototolo joint venture (JV) that is related to platinum assets, the company announced on Thursday.
Anglo American Platinum confirmed that it has completed the acquisition of both Glencore operations – South Africa Proprietary Limited’s 40.2 percent interest and Kagiso Platinum Ventures Proprietary Limited’s 9.8 percent interest – in the Mototolo JV.
The acquisition of the Mototolo JV is effective from November 1 and will become a wholly-owned operation of Anglo-American Platinum.
The upfront purchase consideration to Glencore is nearly R1 billion for the Mototolo JV and will be settled over a six-year period, the company said.
Anglo American Platinum has embarked on a restructuring process by selling deep-level and labour-intensive mines to focus on mechanised and more profitable assets.
The sale of the Mototolo JV marks the end of Glencore’s exposure to the platinum sector, which has been ravaged by the weak US dollar-rand exchange rate and low platinum price. The Mototolo JV was the last platinum-related asset that Glencore owned.
“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,” said Chris Griffith (pictured), the CEO of Anglo American Platinum.
“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,” said Chris.