Johannesburg, South Africa — MININGREVIEW.COM — 27 April 2010
Mvelaphanda Resources (Mvela Resources) “’ a broad-based, pan-African mining and minerals company “’ has announced the sale of 44 million shares in Northam Platinum Limited at a price of R50 per share to one of the world’s leading natural resources companies, Eurasian Natural Resources Corporation plc
In a statement issued here today, Mvela Resources revealed that the R2.2 billion received from ENRC would substantially reduce its debt and enable it to proceed with the simplification of its corporate structure under the unbundling strategy.
ENRC operates six integrated divisions, namely: ferroalloys, iron ore, alumina and aluminium, energy, logistics and other non-ferrous. It controls sizable proven reserves of chromium, manganese, iron ore, bauxite, coal, copper and cobalt, supplemented by extensive resources.
Mvela Resources has briefed the Department of Minerals Resources, which supports the additional foreign capital investment and the vote of confidence in the South African mining industry from a global, diversified mining company of the calibre of ENRC.
Commenting on the transaction, Northam CEO Glyn Lewis welcomed the presence of ENRC as a significant shareholder in the company: “The interest that ENRC has demonstrated in Northam signals the potential that major global mining groups see in the South African mining space, and in particular demonstrates confidence in the platinum group metal (PGM) sector”.
Northam’s current assets comprise the long-life Zondereinde platinum mine near Thabazimbi, which produces some 300.000 ounces of PGMs per annum and the 103 million ounce Booysendal PGM project on the eastern limb of the Bushveld complex.
Caption, Pic 1: The twin-shaft system at Northam.