By Razak Musah Baba
LONDON--Anglo American Platinum Ltd. (AMS.JO) Friday announced the sale of its 42.5% interest in the Pandora joint venture to Lonmin PLC (LMI.LN), as part of its plan to exit from certain non-core operations.
Anglo American Platinum said it has entered into a agreement with Eastern Platinum Ltd., a subsidiary of Lonmin to sell its interest in the Pandora. Anglo American Platinum will receive a deferred cash payment of a minimum of 400 million South African rands ($29.3 million) and a maximum of ZAR1.0 billion oversix years, this includes a rental agreement for the use of and full operational control of Lonmin's Baobab concentrator for a three-year period.
The deferred payment is based on the Pandora's operational cash flows on a mine-to-ore basis as set out in the ore sales agreement.
In 2014 Anglo American Platinum announced the repositioning of its portfolio to focus on its most competitive assets, consisting of largely open pit and mechanized operations which will result in higher margin production, a smaller and more highly skilled workforce, safer operations and a less complex organization.
Anglo American Platinum accordingly said it intends to exit from certain non-core operations including its interest in Pandora.
Formed in 2001, the Pandora joint venture is currently held 50% by Lonmin's subsidiary, Eastern Platinum, 42.5% by Anglo American Platinum through Rustenburg Platinum Ltd., and 7.5% by Northam Ltd., through Mvelaphanda Resources Proprietary Ltd.
-Write to Razak Musah Baba at email@example.com; Twitter: @Raztweet
(END) Dow Jones Newswires
November 11, 2016 06:22 ET (11:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.