Motsepe’s ARM buys Bokoni Platinum
A statement published by ARM indicates the group is buying Bokoni because of the size of the mine's Platinum Group Metals (PGM) resource and the fact that it is a "natural fit" with ARM's other platinum operations on the eastern limb of the Bushveld complex, which are the Modikwa and Two Rivers mines.
ATOK – African Rainbow Minerals (ARM) has acquired 100% shares of Bokoni Platinum Mine from Anglo American Platinum and Atlatsa Resources. Steelburger/Lydenburg News has learned it has cost the company R3.5bn to acquire the shares.
ARM plans to spend a further R5.3bn over the next three years in developing the operation. The negotiations started in October last year and the transaction was concluded in December.
Bokoni Platinum Mine was shut down in 2017 and put under care and maintenance, leaving over 2 600 mine workers unemployed.
ARM, which is owned by the mining magnate and billionaire, Patrice Motsepe, will start with mining operations in 2023.
A statement published by ARM indicates the group is buying Bokoni because of the size of the mine’s Platinum Group Metals (PGM) resource and the fact that it is a “natural fit” with ARM’s other platinum operations on the eastern limb of the Bushveld complex, which are the Modikwa and Two Rivers mines.
The CEO of ARM, Mike Schmidt, said they will start infrastructure development and maintenance of the mine shafts for the next 12 months.
“The acquisition and development of Bokoni Platinum Mines will enable us to scale our PGM portfolio, improve ARM’s global competitiveness and allow us to pursue further value accretive organic growth.”
Natascha Viljoen, the CEO of Anglo American Platinum, commented on the transaction, “We are pleased to have concluded an agreement for the disposal of Bokoni Mine to an established mining company in ARM.
In conjunction with our joint venture partner, Atlatsa, it was important that Bokoni Mine was sold to an operator with the technical and operational capability and access to funding to ensure the restart and sustainable future for the mine. The restart of the mine by ARM is expected to benefit employees, host communities, broader stakeholders and the regional economy, and allow employees and communities to participate in a new ownership structure.”
Bokoni, which originally started operations in 1969, was previously known as Lebowa Platinum when expanded
some 20 years ago by Amplats, and was one of the first major black economic empowerment deals to be implemented by Amplats in 2007.
