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Anglo American Platinum update on the repositioning of the portfolio

Anglo American Platinum has made significant progress on the repositioning of its portfolio, and has announced its intention to divest assets that do not fit its long term strategy,

AAP noted that this decision will include Rustenburg, whose exit was completed on 1 November 2016, Bokoni, which was placed on care and maintenance on 30 October 2017, Union, the Pandora joint venture, as well as the sale of long-dated resources at Amandelbult.

Progress has been made on the outstanding transactions as detailed below,

Completion of the disposal of long-dated Amandelbult resources to Northam

Anglo American Platinum announced the completion of the disposal of mineral resources within the Amandelbult mining right to Northam Platinum on 6 December 2017. The company received a cash consideration of R1 billion, which was used to reduce their net debt.

Completion of the disposal of interest in Pandora joint venture

Anglo American Platinum announced the completion of the disposal of its loss-making 42.5% interest in Pandora to Lonmin

Update on the progress of the disposal of Union mine

According to Anglo, significant progress has been made on the Sale and Purchase Agreement to dispose of Anglo American Platinum’s 85% interest in Union Mine and its 50.1% interest in MASA Chrome Company (collectively Union and MASA) to a subsidiary of Siyanda Resources.

“We have received approval from the South African competition authorities in accordance with the Competition Act on 13 September 2017 and consent in terms of section 11 of the Mineral and Petroleum Resources Development Act on 7 November 2017,” said Mpumi Sithole, Media Manager:Platinum, Anglo American.

“Anglo American Platinum and Siyanda are working to ensure a smooth transition of Union and MASA to Siyanda. The Company will provide a further update upon completion of the transaction.”

Chris Griffith, CEO of Anglo American Platinum commented on the progress of the repositioning and said, “We have made significant progress in the repositioning of our portfolio with the disposal of our 42.5% interest in Pandora to our joint venture partner Lonmin, completing the disposal of long-dated resources at Amandelbult to Northam and progressing the disposal of Union and MASA to Siyanda.

“We believe we have delivered transactions that are beneficial for all parties involved, enabling a sustainable future for the Pandora and Union mines. The benefits of operational control over the Baobab concentrator will enable us to continue to unlock value at Mogalakwena mine, and the cash proceeds received from Northam will allow us to further reduce our net debt position. We will continue to focus on completing the disposal of Union and MASA, which is expected to occur in early 2018.”

 

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