Johannesburg, South Africa — MININGREVIEW.COM — 09 March 2011 – South African platinum producer Royal Bafokeng Platinum Limited (RBP), has agreed the main commercial terms of a deal that will allow Impala Platinum Holdings Limited “’ the world’s second-largest platinum producer “’ to mine part of Royal Bafokeng’s reserves.
“It will give Impala the Merensky ounces they need, while contributing some nice cash flow to Royal Bafokeng, company CFO Martin Prinsloo said in an interview here. Royal Bafokeng will get a royalty of 17.5% of revenue from sales of the metal, according to a presentation posted on its website.
“Impala will access the ore from the northern parts of Royal Bafokeng’s Boschkoppie reserves, gaining access from its own Number 20 shaft,” he said.
“There is scope to do further deals in the future,” Prinsloo continued. The company, 12.6% owned by Anglo Platinum Limited “’ the world’s largest platinum producer “’ agreed last year to give Impala access to its South Shaft in return for royalties.
Royal Bafokeng will use the income to help fund its Styldrift 1 expansion project, which aims to boost production to 611 000ozpa of platinum group metals by the end of 2017, from
288 100ozpa last year. “The project will cost less than the last estimate of R11.8 billion,” Prinsloo said, declining to be more specific.
Shares in Royal Bafokeng were up 0.2% at R64 yesterday, giving it a value of R10.5 billion. Shares in the company have fallen 1.4% from the close of trade on 8 November, when the company started trading shares on the exchange.