The proposed transaction is supplemented by an exclusive chrome marketing agreement with Glencore International to market and sell chrome produced at Northam Platinum’s PGM operations.
In terms of the proposed transaction, Northam Platinum will acquire all Eland’s assets for a price of R175 million including:
- Eland’s two mining rights with a resource estimated at 21.3 Moz 4E with an average grade of 4.4 g/t;
- surface and underground infrastructure including a concentrator with a nameplate capacity of 250 000 tpm;
- a chrome spiral recovery plant;
- a tailings storage facility with a capacity of 100 Mt;
- two decline systems;
- surface support infrastructure designed for a 250 000 tpm operation;
- immovable property; and
- a mining fleet in excess of 100 vehicles which include low profile mechanised mining equipment.
Commenting on the transaction, Northam Platinum CE Paul Dunne said: “The Eland transaction provides Northam with a medium-term option over a large, shallow resource with fully developed, world-class surface infrastructure.
“Northam Platinum will also be acquiring a sizeable mining fleet, a portion of which will be utilised at the Booysendal South operation. The chrome marketing agreement establishes a long-term relationship between Northam and Glencore, a leading global chrome trader, which will contribute to maximising Northam’s chrome revenue.”
The Eland mine is located on the south-eastern limit of the western limb of the Bushveld Igneous Complex. The transaction includes the takeover of Eland’s environmental obligations and responsibilities and is subject to a number of conditions.