Johannesburg, South Africa — MININGREVIEW.COM — 15 May 2009 – Anglo Platinum – the world’s leading primary producer of platinum group metals – has re-negotiated its black ownership deal with junior miner Anooraq Resources Corporation – a Canadian-incorporated BEE company focused on platinum group metals on the Bushveld Complex – to R2.6 billion, citing a drop in platinum prices and worsening credit markets.
The deal was previously cited at R.6 billion.
Bloomberg News reports that Anooraq – founded by a former executive of Harmony Gold – was due to buy majority control of several mines from Angloplat, but had to renegotiate a June 2007 agreement due to the economic crisis.
In April, Annoraq revealed that it was reviewing the financing strategy for the Lebowa platinum mine transaction, which it expected to be completed in the second quarter of 2009.
“The deterioration of global economic conditions has resulted in a weakening of platinum group metal prices and high volatility in commodity-focused share prices,” the two companies said in a statement here.
Apart from revising the amount involved in the transaction, Angloplat has also agreed to re-invest a portion of the consideration in order to share in expected future equity upside in Anooraq.
Bloomberg News reports that several companies have been forced to re-negotiate or re-finance deals to bring on board black investors, due to sliding share prices. It says the commodities slump has worsened the problem for deals in the mining sector.