AMN - SOUTH AFRICA: Northam acquires Eland mine

Northam has made further progress in delivering on its growth strategy by acquiring the Eland platinum mine from Glencore Operations South Africa (GOSA). The transaction is supplemented by an exclusive chrome marketing agreement with Glencore International AG to market and sell chrome produced at Northam’s PGM operations.

In terms of the proposed transaction and for a purchase price of R175 million in cash, Northam will acquire all Eland’s assets, including:

• Eland’s two mining rights with a resource estimated at 21.3 Moz 4E with an average in situ grade of 4.4g/t.

• Surface and underground infrastructure, including a concentrator with nameplate capacity of 250,000 t/month; chrome spiral recovery plant; tailings storage facility with a capacity of 100 Mt; two decline systems.

• Surface support infrastructure designed for a 250,000 t/month operation.

• Immovable property.

• A mining fleet in excess of 100 vehicles which include low profile mechanised mining equipment.

Northam Chief Executive Paul Dunne said: “The Eland transaction provides Northam with a medium-term option over a large, shallow resource with fully developed, world-class surface infrastructure.

“Northam will also be acquiring a sizeable mining fleet, a portion of which will be utilised at the Booysendal South operation. The chrome marketing agreement establishes a long-term relationship between Northam and Glencore, a leading global chrome trader, which will contribute to maximising Northam’s chrome revenue.”

The Eland mine is on the south-eastern limit of the western limb of the Bushveld Igneous Complex.

www.northam.co.za

News courtesy of International Mining