Anglo American Platinum to Sell Interest in South African Mine to African Rainbow Minerals Ltd.

By Anthony O. Goriainoff

Anglo American Platinum Ltd. said on Monday that it will sell its 49% interest in South Africa's Bokoni mine to African Rainbow Minerals Ltd. for 3.5 billion rand ($220.2 million).

The mining company said proceeds from the transaction will be distributed among Bokoni Platinum Holdings' joint-venture partner Atlatsa Resources Corp.--which has a 51% interest--according to pre-existing commercial arrangements.

It added that under the sales and purchase agreement, it has agreed to buy concentrate on commercially-agreed terms for a 23-year period from delivery of the first concentrate.

The Bokoni mine was placed on care and maintenance in 2017 after several years of significant cash losses under difficult market conditions, Anglo American Platinum said.

The transaction is expected to complete in 2022, the company said.

"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," Chief Executive Natascha Viljoen said.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

12-20-21 0133ET