- Published on 11 October 2016
Large resource adds further life to Zondereinde
Johannesburg, Tuesday 11 October 2016. In a three-part transaction valued at R1 billion, Northam Platinum today announced the acquisition of a strategic resource holding from Anglo American Platinum Limited (Anglo Platinum).
The transaction, concluded with Anglo Platinum subsidiary Rustenburg Platinum Mines Limited (RPM), makes provision for the following:
- Northam’s acquisition of a portion of the mining right and associated resource from the Amandelbult mine on the north-western boundary of Northam’s Zondereinde mine, This large resource is similar in character to that of the Zondereinde orebody lying to the west of the mine shaft. A short lead time and limited capital expenditure are required to access the acquired resource from Zondereinde’s existing infrastructure.
- Northam’s acquisition of the land overlying the resource, in exchange for the disposal of a portion of the Zondereinde mining right on the north-western corner of the Zondereinde property. Zondereinde has no plans to mine this area as it is not suitable for the effective use of hydro-powered mining equipment, which is used throughout the Zondereinde underground workings.
Northam chief executive Paul Dunne said today, “The transaction brings flexibility and optionality to the mining operations at Zondereinde. The acquired resource is of high quality, is well understood by Northam and allows us to better leverage the existing Zondereinde infrastructure. The additional resource also enables Northam to continue mining higher-grade Merensky ore for a longer period, with relatively low incremental capital expenditure. Northam is confident that the transaction will add sustainable shareholder value, unlocking a large resource in a capital efficient manner. The transaction positions Zondereinde on a similar long-term footing as our Booysendal operation.”
The resource acquired from Anglo Platinum holds significant benefits for Northam, including:
- extending the Zondereinde economic life of mine to beyond 30 years;
- providing extensive mining flexibility;
- early access to additional higher-grade Merensky and UG2 reef;
- reducing the overall average mining depth of the Zondereinde mine, with associated potential savings;
- reducing mining risk and enhancing long-term flexibility and optionality for Zondereinde
The transaction is subject to the consent of the Minister of Mineral Resources in terms of section 102 of the Mineral and Petroleum Resources Development Act, No. 28.
Russell & Associates
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Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429