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September 2015
MODERN MINING
25
PLATINUM
Above:
Siphumelele – seen
here – currently mines the
Merensky Reef (although
UG2 will follow in future).
Commissioned in 1983, it
is conventionally mined
(breast stoping with strike
pillars) and its infrastructure
includes one vertical shaft
and a sub-decline (photo:
AAP).
Above left:
Underground
at Bathopele. This is the
newest of the mines that
Sibanye will be acquiring.
A trackless mechanised
operation accessed by two
decline shafts, it mines the
UG2 horizon using low
profile and extra-low profile
equipment (photo: AAP).
PGM (4E) mineral reserves amount to approxi-
mately 9,7 Moz and mineral resources to
88,8 Moz.
Anyone expecting an immediate transfor-
mation of the assets will be disappointed as
completion of the deal is not expected until
the third quarter of next year. Until then the
Rustenburg Operations will remain under the
management of Anglo American Platinum
(AAP). Management information and opera-
tional decisions will, however, be shared with
Sibanye once the competition authorities have
approved the acquisition.
The details of the transaction were revealed
on 9 September by Chris Griffith, CEO of Anglo
American Platinum, and Neal Froneman, CEO,
of Sibanye, at a presentation held in a packed
JSE auditorium in Sandton.
Commenting on the transaction, Froneman
said: “We have for some time indicated our
interest in participating in the PGM sector and
believe that these assets provide an attractively
priced entry at an advantageous moment in
the price cycle. The Rustenburg Operations
are similar in nature to Sibanye’s current gold
operations and, after extensive engagement
with AAP and completing a thorough due dili-
gence, we are confident that we will be able to
realise value for our stakeholders by leveraging
our successful operating model.”
For his part, Griffith said the deal represented
a significant milestone in the repositioning of
AAP’s portfolio. “The Rustenburg Operations
are quality assets with long-term and sustain-
able potential under Sibanye’s control, given
their proven and successful track record of
operating conventional mines in South Africa,”
he said. “Our focus from the outset has been
to identify the right option for the business, its
stakeholders and shareholders and we believe
we have concluded a beneficial transaction for
both parties, whilst also securing a sustainable
future for the Rustenburg Operations.
“We remain committed to pursuing our strat-
egy, continuing to reposition Anglo American
Platinum as a high quality, largely mechanised
operator yielding high margins. We are focus-
ing on our core assets and exiting those assets
we have identified as non-core in a responsible
manner, consistent with the objectives of the
Mining Charter.”
A positive for Sibanye, as pointed out by
Froneman at the JSE presentation, is that much
of the rationalising and restructuring deemed
necessary for the health of the Rustenburg
Operations has already taken place, with AAP
having trimmed the workforce substantially
and eliminated some loss-making production.
The Rustenburg assets will come under a
new division of Sibanye – Sibanye Platinum.
This will be run by a management team headed
by Shadwick Bessit, currently Senior Vice
President: Underground Operations – Kloof
and Driefontein,, Robert van Niekerk (Senior
VP Organisational Effectiveness) and Justin
Fronenman (who will be CFO). They will be
assisted by Barry Davidson as Non-Executive
Director.
Bessit served as Executive Director of
Operations at Impala Platinum from 2005 to
2010 after joining Implats in 2002 as General
Manager. Previously, he was employed at
AngloGold Ashanti from 1986 to 2002 where
he moved through the ranks to GM level at the
Deelkraal, Elandsrand and Savuka mines. Van
Niekerk held various senior management posi-
tions at Anglo American Platinum Operations
between 2009 and 2011. Davidson, of course,
is a previous Executive Chairman of Anglo
American Platinum.