Anglo American Platinum announces that its wholly owned subsidiary, Rustenburg Platinum Mines Limited has signed an agreement to dispose of mineral resources within the Amandelbult mining right (the “Resource”), and surface properties above and adjacent to the Resource, to Northam Platinum Limited (“Northam”) for a consideration comprising R1.0 billion in cash (the “Proceeds”) and an ancillary mineral resource within Northam’s Zondereinde mining right that borders Amandelbult’s mining right and which provides the Company with flexibility for the placement of future mining infrastructure (the “Transaction”).

The Resource comprises an area of Merensky and UG2 resources containing approximately 16.7 million 4E ounces and bordering the west side of Northam’s Zondereinde mine. Shareholders may view a map of the relevant area on the Company’s website, www.angloamericanplatinum.com.

The Resource is long-dated and outside of Anglo American Platinum’s long term life-of-mine plans and therefore does not impact any current or future mining plans. The Transaction does not constrain the Company’s next generation options for the Amandelbult mine, which has a number of shallow and less capital intensive life extension options. The surface properties forming part of the Transaction will enable Northam to access the Resource.

In addition to the Proceeds, the Transaction consideration includes an ancillary mineral resource located on the north-west corner of the Zondereinde mining right. This area gives Anglo American Platinum flexibility for the placement of future mining infrastructure, including options for next generation replacement or expansion plans at Amandelbult.

Chris Griffith, CEO of Anglo American Platinum commented on the Transaction:

“We are pleased to announce the disposal of certain long-dated mineral resources within the Amandelbult mining right to Northam. The Transaction is mutually beneficial and allows us to exit resources for value which are outside of our life-of-mine plans and do not impact current mining or the future potential of Amandelbult. We have also secured an ancillary contiguous resource that provides us further flexibility for our future plans for the mine. The Proceeds will be used to further reduce net debt and strengthen Anglo American Platinum’s balance sheet.”

The Transaction is subject to the necessary consents being obtained from the Minister of Mineral Resources, including approval in terms of Section 102 of the Mineral and Petroleum Resources Development Act.

Download a map of the affected area

Johannesburg
11 October 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)