Global diversified mining group Eurasian Natural Resources Corporation (ENRC) has bought a 12.2% interest in Northam Platinum Limited, a major platinum producer in South Africa, from Mvelaphanda Resources, for a cash consideration of R50 per share, equating to a total consideration of R2.2B (approximately US$296M).
The transaction is expected to be completed in May 2010.
Northam is one of South Africa’s leading platinum producers and is one of only four major platinum group metals (PGM) mining groups in South Africa with smelting operations, providing it with operational and competitive advantages from mining through processing to marketing, says ENRC.
Commenting on the acquisition, Felix Vulis, CEO of ENRC, said: “The interest in Northam is a strategic opportunity to invest in one of the largest PGM miners in the world at a time when platinum is expected to benefit from increased demand and to face supply constraints.”
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