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ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum announces the sale of its interest in Bokoni Mine

Release Date: 20/12/2021 07:32
Code(s): AMS     PDF:  
Wrap Text
Anglo American Platinum announces the sale of its interest in Bokoni Mine

Anglo American Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
(“The Company" or "Anglo American Platinum")

20 December 2021

Anglo American Platinum announces the sale of its interest in Bokoni Mine

Anglo American Platinum announces that Bokoni Platinum Holdings has entered into a Sales and Purchase Agreement
(“SPA”) to dispose of its 100% interest in Bokoni Mine to African Rainbow Minerals Limited (“ARM”) (the
“Transaction”). The Company holds a 49% interest and our joint venture partner, Atlatsa Resources Corporation
(“Atlatsa”), holds a 51% interest of Bokoni Platinum Holdings. The Transaction will include employees and local
communities in the new ownership structure alongside ARM. Bokoni Mine has been on care and maintenance since

Natascha Viljoen, CEO of Anglo American Platinum, commented on the Transaction:

“We are pleased to have concluded an agreement for the disposal of Bokoni Mine to an established mining company
in ARM. In conjunction with our joint venture partner, Atlatsa, it was important that Bokoni Mine was sold to an
operator with the technical and operational capability and access to funding to ensure the restart and sustainable
future for the mine. The restart of the mine by ARM is expected to benefit employees, host communities, broader
stakeholders and the regional economy, and allow employees and communities to participate in a new ownership

Background to the Transaction

Bokoni Mine is located in the Eastern Limb of the Bushveld Complex in the Limpopo province of South Africa. The
joint venture was set-up in 2007 between Atlatsa and Anglo American Platinum (the “joint venture partners”). In
2017, Bokoni Mine was placed on care and maintenance, following several years of significant cash losses under
difficult market conditions.

In 2019, the joint venture partners commissioned an independent technical study to evaluate options that would
allow the mine to be restarted. The study looked at options to position the mine with the necessary capital
investment into a more sustainable operation. Following the successful completion of the study, the joint venture
partners decided to start a process to dispose of their interests in Bokoni Mine to a buyer that would be in a position
to allocate the capital required to restart the operation. An extensive, inclusive and thorough process has been
conducted to find a buyer with the necessary technical, operational and funding capacity to operate and invest in the
mine, setting it on a new sustainable path.
Disposal consideration

Under the terms of the SPA, Bokoni Platinum Holdings will receive an upfront cash consideration of R3.5 billion for
the Bokoni Mine, which proceeds will be distributed to the joint venture partners in accordance with pre-existing
commercial arrangements which take into account, inter alia, their respective shareholding interests, claims and
entitlements. The Transaction consideration unlocks value from the investment entered into by Atlatsa and its
shareholders in 2007, which include the local communities, to support value creation for historically disadvantaged
South Africans (HDSAs) through facilitated participation in the mining industry.

Conditions precedent and effective date

The Transaction is subject to the fulfilment or waiver (where capable of waiver) of, amongst others, the following
notable conditions precedent:

-   consent in terms of Section 11 for the disposal of a controlling interest in Bokoni Mine to the new owners by the
    Department of Mineral Resources and Energy (DMRE); and
-   approvals by the relevant Competition Authorities.

The Transaction is expected to complete in 2022.

Purchase of Concentrate

In conjunction with entering into the SPA, Anglo American Platinum has agreed a purchase of concentrate agreement
with ARM where Anglo American Platinum will purchase concentrate on commercially agreed terms from the Bokoni
Mine for a period of twenty-three years from delivery of first concentrate, aligned with the current agreed life-of-
mine plan.

Categorisation of the Transaction

The Transaction is not categorised for Anglo American Platinum under Section 9.3 of the JSE listing requirements and
therefore no shareholder approval is required.
Financial advisor:
Rand Merchant Bank (a division of FirstRand Bank Limited)

Legal advisor:
Webber Wentzel

Merrill Lynch South Africa (Pty) Limited t/a BofA Securities

For further information, please contact:

Investors:                                                       Media:
Emma Chapman                                                     Nomonde Ndwalaza
(SA) +27 (0) 76 480 1570                                         (SA) +27 (0) 76 483 0763                

Notes to editors:

Anglo American Platinum Limited is a member of the Anglo American plc Group and is a leading
primary producer of platinum group metals. The company is listed on the Johannesburg Securities
Exchange (JSE). Its mining, smelting and refining operations are based in South Africa. Elsewhere in
the world, the Group owns Unki Platinum Mine and smelter in Zimbabwe. Anglo American Platinum
has two joint operations with several historically disadvantaged South African consortia as part of its
commitment to the transformation of the mining industry. Anglo American Platinum is committed to
the highest standards of safety and continues to make a meaningful and sustainable difference in the
development of the communities around its operations.

Anglo American is a leading global mining company and our products are the essential ingredients in
almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad
range of future development options, provides many of the future-enabling metals and minerals for
a cleaner, greener, more sustainable world and that meet the fast growing every day demands of
billions of consumers. With our people at the heart of our business, we use innovative practices and
the latest technologies to discover new resources and to mine, process, move and market our
products to our customers – safely and sustainably.
 As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium
 quality iron ore and metallurgical coal for steelmaking, and nickel – with crop nutrients in
 development – we are committed to being carbon neutral across our operations by 2040. More
 broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work
 towards a healthy environment, creating thriving communities and building trust as a corporate
 leader. We work together with our business partners and diverse stakeholders to unlock enduring
 value from precious natural resources for the benefit of the communities and countries in which we
 operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to
 improve people’s lives.

Date: 20-12-2021 07:32:00
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