BizNis Africa
Latest News
SANRAL empowers local SMMEs road maintenance providers
The present upgrading of the Moloto Road north of...
Nthwese Developments gets 2018 SAPOA Property Development Award
Nthwese Developments Bambanani Shopping Centre in Diepsloot won the...
Shopping malls remain more profitable for big brands
Shopping centres are being expanded, renovated and some newly...
Tech hubs in East Africa spur next generation of disruptors
Ongoing improvement in East Africa’s economic prospects is forecast...
Climate Investor One becomes major renewable energy development funders
Climate Fund Managers (CFM), the fund manager of the...
GRIT and Hodari officially launch Mozambican Property and Asset Management Company
Grit, the only listed Africa-focused income distribution group to...
VC4A calls for African start-up entrepreneurs to apply for investment
VC4A (https://VC4A.com)  is calling for disruptive African scale-ups looking...
Sasfin Wealth appoints new Senior Portfolio Manager
Sasfin Wealth is pleased to announce the appointment of...
Cyber and digital skills top growth threats to private business
Growth confidence is high amongst private business owners, for...
SAICA charges former Eskom CFO Anoj Singh with misconduct
The South African Institute of Chartered Accountants (SAICA) announced...

Ben Magara, Lonmin Chief Executive Officer

Lonmin Plc is pleased to announce the completion of the acquisition of Anglo American Platinum’s (AAP) 42.5% interest in the Pandora Joint Venture, as well as Mvelaphanda Resources Proprietary Limited’s (Mvelaphanda) 7.5% interest.

The agreement to acquire AAP’s interest in Pandora was first announced on 11 November 2016 and the acquisition of Mvelaphanda’s interest was announced on 13 May 2017.

Lonmin now owns 100% of Pandora.

The effective date for both transactions was 1 December 2017.

The completion of the Pandora transaction unlocks significant synergies for Lonmin.

It allows Lonmin to extend mining at its Saffy Shaft without having to spend ZAR2.6 billion of capital expenditure, of which ZAR1.6 billion would have been required over the next four years. It also provides significant future opportunities to develop Pandora’s potential.

Pandora mines PGMs from the UG2 and Merensky reefs underlying the Pandora mining area. 100% of the ore produced by the Pandora JV is sold to Lonmin for processing and refining. The gross assets of the Pandora JV were ZAR1.1 billion at 30 September 2016. Pandora made an operating loss of ZAR109 million in financial year 2016, of which 50% was reflected in Lonmin’s 2016 accounts. Lonmin received a contribution of ZAR117 million in its 2016 financial year from the ore purchase agreement, which offset the loss reported by the joint venture.

“Lonmin now owns 100% of Pandora. This is an excellent strategic fit for us, which equips us with a valuable contiguous asset with long-term development potential and allows us to maintain production levels at Saffy while significantly reducing our capital expenditure requirements at this operation over the short- and medium-term,” says Ben Magara, Lonmin Chief Executive Officer.

Leave a Reply

%d bloggers like this: