Amplat Acquires 39% Stake In Glencore’s Mototolo Project
The JV is currently operated as a 50/50 venture between Anglo American Platinum and a partnership between Glencore (39%) and Kagiso Tiso Holdings (11%).
“The acquisition of Glencore’s stake in the Mototolo JV increases Anglo American Platinum’s interest in a mechanised, low-cost, high quality resource, creating another major
PGM hub for the company. The transaction unlocks significant optionality for the company in its wholly-owned Der Brochen resource,” commented Chris Griffith, CEO of Amplat.
The acquisition of Glencore’s interest in the Mototolo JV better positions Anglo American Platinum as the majority owner of a high-quality, fully mechanised operation. The transaction will secure significant infrastructure for Anglo American Platinum, allowing for value-enhancing optionality between the Mototolo JV area and the adjacent wholly owned Der Brochen resource, creating a major PGM hub for the company. By combining the Mototolo JV area with the down-dip and adjacent Der Brochen resource, the life-of-mine is significantly extended from the current c.5 year life of mine, to over 30 years, said the company.
The consideration for the transaction was granted based on an upfront cash payment of R800m with the total purchase consideration capped at R22bn.
The transaction remains subject to approval from the Competition Commission, ahead of its effective date in Q4, 2018.