The R4.5 billion acquisition by Sibanye Gold follows the granting of consent in terms of Section 11 of the Mineral and Petroleum Resources Development Act, 2002 for the sale of the Rustenburg Operations mining right and the prospecting right to Sibanye.
The Rustenburg Operations to be acquired by Sibanye include the Bathopele, Siphumelele and Thembelani mines as well as the integrated Khomani and Khuseleka mining operations, two concentrating plants, an on-site chrome recovery plant, the Western Limb Tailings Retreatment Plant, associated surface infrastructure and related assets and liabilities on a going concern basis, including normalised levels of working capital.
The effective date of the implementation of the transaction will be 1 November 2016, when Sibanye Gold will take over ownership, control and management of the Rustenburg Operations.
“We welcome the receipt of the Section 11 consent from the Department of Mineral Resources, which is the last regulatory condition outstanding,” says Sibanye CEO Neal Froneman.
“We look forward to now incorporating the Rustenburg operations into our platinum division, which will allow us to realise cost savings across the group and operational synergies to create a sustainable platinum division and to unlock value for the benefit of all stakeholders,” says Froneman.
This transaction is consistent with Sibanye’s strategy to grow its business in order to sustain its position as an industry leading dividend paying company.