Amplats Purchases Glencore’s 39-percent Stake in Mototolo JV

Anglo American Platinum’s (Amplats) (JSE:AMS) subsidiary Rustenburg Platinum Mines has spent R1.5 billion to acquire Glencore’s (LSE:GLEN) 39-percent stake in the companies’ joint venture (JV) Mototolo project in Limpopo, Amplats announced on Monday (July 23).

The acquisition leaves Amplats with a 89-percent ownership of the project, with the remaining 11-percent held by Kagiso Tiso Holdings, which had the option to maintain its interest in the asset or unload it for a further payment of R350 million by Amplats.

“The acquisition of Glencore’s stake in the Mototolo JV increases Anglo American Platinum’s interest in a mechanized, low-cost, high quality resource, creating another major platinum group metals (PGM) hub for the company,” stated Chris Griffith, CEO of Anglo American Platinum.

“The transaction unlocks significant optionality for the company in its wholly-owned Der Brochen resource,” he added.

By combining Mototolo and Der Brochen, the company is able to extend the current remaining mine life of five years to more than 30 years.

The transaction is expected to officially be in effect sometime during the fourth quarter of this year.

Last week, Amplats announced that it delivered 1.2-million ounces of platinum group metals in its second quarter, leading to a revision of its full-year platinum production guidance to between 2.4-million and 2.45-million ounces.

“Platinum production increased by 12 percent to 270,600 ounces and palladium production increased by 11 percent to 215,600 ounces,” the company stated.

At Mototolo, significant amounts of ore stockpile was processed, which helped the company deliver an impressive Q2 performance.

As of 3:19 p.m. EST, Anglo American Platinum was trading at ZAC 36,000.00.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.