The world’s largest platinum producer Anglo American Platinum said on Monday it had reached a four billion rand agreement to jointly mine land with a South African black tribe.
The 50/50 joint venture between Angloplat and the Royal Bafokeng Nation would produce 485 000 ounces of refined platinum per year about five years after the deal is concluded, probably at the end of the year, Angloplat and the tribe said in a statement.
”The parties are pleased to announce that the joint venture agreement has been concluded and that this empowerment transaction has resulted in the joint ownership of a four billion rand platinum mine,” the statement said.
The agreement comes after a year of negotiation, which started before the debate over a controversial new Minerals and Petroleum Resources Development Bill, which aims to give blacks more say in South Africa’s white-dominated industry.
In terms of the agreement, Angloplat will contribute mineral reserves on one farm — Boschkoppie — and the Royal Bafokeng will contribute reserves on the adjacent Styldrift farm in North West province.
The Bafokeng will also buy half of the mining infrastructure on Angloplat’s farm, known as the Bafokeng Rasimone Platinum Mine, which would in turn be used to gain access to the Styldrift farm.
The deal comes less than a week after Angloplat said the government approved separate 20 billion rand expansion plans, which included an agreement to set up two 50/50 joints ventures with black-controlled companies — one each on portions of Angloplat’s Twickenham and Der Brochen farms.
News of the expansion plans helped ease market jitters over a draft mining charter, which will set targets and deadlines to enforce black empowerment provisions of the new minerals bill.
Angloplat, 59,6% owned by global resources giant Anglo American, produces an annual two million ounces of platinum. – Reuters