Northam acquires Eland and enters chrome marketing agreement
...drives further consolidation in the PGM sector
Johannesburg, Friday 24 February. Northam is pleased to announce that it has made further progress in delivering on its growth strategy by acquiring the Eland Platinum mine from Glencore Operations South Africa (Pty) Ltd (GOSA). This proposed transaction is supplemented by an exclusive chrome marketing agreement with Glencore International AG (Glencore) to market and sell chrome produced at Northam’s PGM operations.
In terms of the proposed transaction and for a purchase price of R175 million in cash, Northam will acquire all Eland’s assets, including:
- Eland’s two mining rights with a resource estimated at 21.3Moz 4E with an average in situ grade of 4.4g/t
- surface and underground infrastructure including a concentrator with a nameplate capacity of 250ktpm; a chrome spiral recovery plant; a tailings storage facility with a capacity of 100 million tonnes; two decline systems; and surface support infrastructure designed for a 250ktpm operation;
- immovable property; and
- a mining fleet in excess of 100 vehicles which include low profile mechanised mining equipment.
Commenting on the transaction today, Northam chief executive Paul Dunne said,“The Eland transaction provides Northam with a medium-term option over a large, shallow resource with fully developed, world-class surface infrastructure. Northam will also be acquiring a sizeable mining fleet, a portion of which will be utilised at the Booysendal South operation. The chrome marketing agreement establishes a long-term relationship between Northam and Glencore, a leading global chrome trader, which will contribute to maximising Northam’s chrome revenue.”
The Eland mine is located on the south-eastern limit of the western limb of the Bushveld Igneous Complex. The transaction includes the takeover of Eland’s environmental obligations and responsibilities and is subject to a number of conditions precedent.
Russell & Associates
Tel +27 (0)11 880 3924
Marion Brower +27 71 493 0387
Jan Walker +27 71 493 0429