Anglo American Platinum to sell Union Mine stake
Anglo American Platinum has agreed to sell its 85% interest in the Union Mine in South Africa and 50.1% interest in MASA Chrome to a subsidiary of Siyanda.
Under the terms of the deal, the consideration comprises an initial purchase price of 400m South African rand (approximately $30m) in cash, and a deferred consideration based on 35% of cumulative distributable free cash flow paid annually as an earn-out, for a period of ten years from the completion date.
Siyanda will sell concentrate produced by the Union Mine to Anglo American Platinum for seven years from the completion date on pre-agreed commercial terms. After that, Anglo will toll treat concentrate for the remaining life of Union Mine.
The deal is subject to regulatory approval and is expected to complete this year.
In a separate statement on Wednesday, Anglo American said its platinum business will contribute $65m to the group's underlying earnings for 2016, compared to $168m the year before.