Anglo American Platinum (Amplats) has agreed to divest a 50 per cent interest in pool-and-share agreements (PSAs) in connection with two South African mines to platinum group metals (PGMs) miner Sibanye-Stillwater.

The sale arrangements include the sale of the PSAs of Kroondal and the Marikana operations in Rustenberg, South Africa, to Sibanye-Stillwater.

Sibanye-Stillwater currently operates the Kroondal operation, which is located adjacent to, and up-dip of Sibanye Stillwater’s Rustenburg operation and the shallow Klipfontein open pit operation.

“The Kroondal operation is subject to a 50/50 pool and share agreement (Kroondal PSA) between Kroondal Operations Proprietary Limited (a 100 per cent held subsidiary of Sibanye-Stillwater) and RPM Sibanye Stillwater acquired its 50 per cent interest in the Kroondal PSA following its acquisition of Aquarius Platinum Limited in April 2016.”
Sibanye-Stillwater statement

The associated liabilities of the projects, including rehabilitation costs estimated at $26.5 million (R415 million) will be borne by Sibanye-Stillwater.

Under the agreement signed with Amplats subsidiary Rustenberg Platinum Mines (RPM), Sibanye-Stillwater unit will assume full ownership of the Kroondal PGM operation.

Conditions for Implementation of Transaction

The implementation of the sale transaction is subject to conditions such as the delivery of 1,350,000 4E ounces of PGMs by the Kroondal operation to RPM’s designated smelters.

The 1,350,000 of 4E ounces of PGMs will be delivered in accordance with the terms of the current Kroondal PSA and the current Kroondal operation purchase of concentrate (PoC) agreement with RPM. This condition precedent is expected to be fulfilled early in 2024, a statement released by Sibanye-Stillwater indicated.

The condition also includes regulatory approvals involving Competition Commission approval and Section 11 consent in terms of the Mineral and Petroleum Resources Development Act, 2002. This is to complete the transfer of the mining right, currently held by RPM, to Sibanye-Stillwater’s Rustenburg operation.

These agreements will more than double the life of the Kroondal operation, underpinning much needed sustained employment opportunities, and ensuring significant value creation for all stakeholders.

This could be realized through the lower cost and more efficient extraction of the project area orebody than would have been the case as two standalone operations. Sibanye-Stillwater also expects the transaction to facilitate the life extension of the Kroondal mine to 2029.

Sibanye-Stillwater CEO Neal Froneman commented:

“We welcome this mutually beneficial transaction which, through the full consolidation of these operations under a single owner will unlock significant value for all stakeholders by extending the operating life of the Kroondal operation, which as a standalone operation, was constrained by the existing PSA agreement.

“We are unlocking the true potential of these adjacent mines by utilising the mechanised and low-cost Kroondal operation to mine across the boundary with the Rustenburg operation.

“This will accelerate the extraction of more remote parts of the Rustenburg operation orebody, sustain employment for more than 2,500 people until 2029 and ensure the creation of significant value for all stakeholders in the region.”
NEal Froneman, Sibanye-Stillwater, CEO