Anglo American Platinum (Amplats) (AMSJ.J) will sell its 50% stake in its Kroondal and Marikana operations northwest of Johannesburg to Sibanye Stillwater , the platinum group metals miners (PGM) said on Monday.
Sibanye Stillwater, which controls the other 50% of the mines, will take full control for a cash consideration of 1 rand ($0.0643), and all associated liabilities of the projects, including costs related to rehabilitation estimated at 415 million rand, it said.
Amplats’ parent group Anglo American (AAL.L) has been selling assets in South Africa as part of a broader streamlining of the group.
In the last three years, the London-listed company has sold its gold and coal operations in the country, and narrowed its focus on high-value PGM assets.
“Amplats handing over the ownership of Kroondal allows them to slim-line their operations and clean up their balance sheet,” Roy Topol, portfolio manager at Cratos Capital, said.
Sibanye, which was formed in 2013 after Gold Fields (GFIJ.J) sold some of its gold mines, has been on an acquisition spree in the last five years, diversifying the company from a pure gold miner to a major PGM player.
PGM contributes up to 84% of the company’s total profitability.
As part of the transaction, Sibanye would also deliver 1.35 million ounces of platinum concentrate from Kroondal to Amplats’ Rustenberg smelting operations, the statement said.
Without the deal, Kroondal had been expected to close in 2025.
Sibanye says the transaction will extend Kroondal’s life of mine to 2029 and save jobs.
Amplats says its Kroondal and Marikana operations had limited strategic value under the world’s leading PGM producer’s broader plans.
Both mines have a combined workforce of over 30,000, Sibanye said.