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15 February 2017 |
Anglo American Platinum agrees sale of Union mine to Siyanda Resources |
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Anglo American plc ("Anglo American") notes Anglo American Platinum's announcement of its agreement to sell its 85% interest in the Union Mine in South Africa and 50.1% interest in MASA Chrome Company to a subsidiary of Siyanda Resources ("Siyanda") ("the Transaction"). Anglo American Platinum will retain the Mortimer smelter operation.
Under the terms of the Transaction, the consideration comprises an initial purchase price of R400 million (approximately $30 million) in cash, as well as a deferred consideration based on 35% of cumulative distributable free cash flow paid annually as an earn-out, for a period of ten years from the completion date of the Transaction.
Siyanda will sell concentrate produced by the Union Mine to Anglo American Platinum for a period of seven years from the completion date of the Transaction on pre-agreed commercial terms, thereafter Anglo American Platinum will toll treat concentrate for the remaining life of Union Mine.
The Transaction is subject to conditions precedent typical of a transaction of this nature, including regulatory approval in South Africa, and is expected to complete during 2017.
The Transaction is a smaller related party transaction under UK Listing Authority Listing Rule 11.1.10.R as the Public Investment Corporation, a substantial shareholder of Anglo American, is a 30% shareholder in Siyanda and Siyanda is the current 49.9% shareholder in MASA Chrome, a subsidiary of Anglo American.
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Notes to editors:
Anglo American is a globally diversified mining business. Our portfolio of world-class competitive mining operations and undeveloped resources provides the raw materials to meet the growing consumer-driven demands of the world's developed and maturing economies. Our people are at the heart of our business. It is our people who use the latest technologies to find new resources, plan and build our mines and who mine, process and move and market our products - from diamonds (through De Beers) to platinum and other precious metals and copper - to our customers around the world.
As a responsible miner, we are the custodians of those precious resources. We work together with our key partners and stakeholders to unlock the long-term value that those resources represent for our shareholders, but also for the communities and countries in which we operate - creating sustainable value and making a real difference.
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