21 Dec Motsepe-backed African Rainbow Minerals to acquire Bokoni platinum mine for R3.5 billion
African Rainbow Minerals, a South African mining company backed by billionaire Patrice Motsepe, has agreed to purchase Anglo American Platinum’s mothballed Bokoni platinum mine (BPM) for R3.5 billion (US$221 million).
The deal comes after a collection of the world’s biggest platinum miners declared record dividends this year based on rebounding demand for platinum group metals (PGMs) from automakers.
JSE-listed African Rainbow Minerals, which has investments spanning manganese to gold and iron ore, is looking to leverage an asset that was mothballed before PGM prices skyrocketed during the past few years.
“The acquisition and development of BPM will enable us to scale our platinum group metals portfolio,” said African Rainbow Minerals chairman Motsepe in a statement. The well-known businessmen also fulfils the non-executive chairman role at Harmony Gold and is deputy chairman of financial services firm Sanlam.
African Rainbow Minerals plans to spend about R5.3 billion rand over three years at Bokoni, with mining set to restart in 2023. The project will create about 5,000 jobs, half of them permanent, the company said.
The Bokoni mine, jointly owned by Amplats and Atlatsa Resources Corp, was placed on care and maintenance in 2017 as the Anglo American Plc unit wound down less profitable mines and shifted toward mechanised operations.