Anglo American Refuses Platinum Group Metals Sale

Platinum Group Metals Ltd. (TSX:PTM,NYSE:PLG) announced a subsidiary of Anglo American Platinum Limited (LSE:AAL) has refused to purchase the off-take of concentrate from the Western Bushveld Project 1 platinum mine.

As quoted in the press release:

Project 1 is owned 74% by Platinum Group and 26% by Wesizwe Platinum (WEZ-JSE; 45% owned by Jinchuan Group of China).

Anglo Platinum’s decision to exercise its right demonstrates that the planned 275,000 ounces per year of platinum, palladium, rhodium and gold in concentrate from Project 1 is attractive in the current market. Project 1 has an estimated mine life in excess of 20 years and construction is in progress with first production planned in 2014. Project 1 hosts a shallow, high grade, Merensky ore body accessible by decline tunnels that are currently in progress. Sulphide Merensky Reef ore is more desirable than ore from the chromite rich UG2 Reef. Merensky based concentrates are typically higher grade, easier to smelt and offer better recoveries.

Click here to read the Platinum Group Metals Ltd. (TSX:PTM) press release.