In July 2017, Northam reached an agreement to purchase a suite of PGM recycling equipment and the associated premises from A-1 Specialized Services Inc., a recycler of PGMs. The business is located in the state of Pennsylvania, United States of America.
The total value of the transaction amounts to USD10.7 million in cash. The recycling business is a key component on the supply side and the transaction gives Northam a low-cost entry into this segment of the PGM market. The recyclable material market from auto catalysts in the US is well-established, large and continues to expand.
Northam has secured an excellent asset base of strategic future importance; which is an easily scalable business to meet growing demand; and provides exposure to the broader PGM market.
The purchase includes multiple ceramic catalytic converter processing lines, ancillary equipment including sampling and separation systems, transportation and a materials handling fleet.
Northam Recovery Services will operate two principal lines of business: the processing of salvage automotive catalytic converters, obtained worldwide from networks of dismantlers, scrap yards, parts dealers, and manufacturers, to recover platinum, palladium and rhodium, and the marketing and sale to consumers of these same metals in commodity-grade form.
Platinum group metal products have a profound, positive impact upon the environment primarily through the elimination of automotive pollutants. Additionally, recycling activities act to conserve limited resources and further protect the environment by reducing the need for extractive mining.