Sibanye-Stillwater buys Londin mining for $382million

By Dale Benton
Share
The third largest producer of palladium and platinum metals has just closed a deal to acquire another PGM producer, becoming the second largest producer...

The third largest producer of palladium and platinum metals has just closed a deal to acquire another PGM producer, becoming the second largest producer in the world.

Sibanye Stillwater, an independent global precious metal mining group with operations across the Southern African region and the United states region, has completed a $382 million deal to buy out the troubled PGM miner Londin Mining.

Through the deal, Sibanye will help the struggling miner yield annual savings of around $12 million by 2021. This comes after Londin has spent the last nine years under financial duress, with a CAPEX exceeding more than $1.6 billion since 2008.

Despite such an enormous figure, Londin was unable to consistently fund its platinum mines in South Africa.

 

Related stories:

Aura Energy to list Häggån vanadium project as its own entity as battery metal market surges

Read the December issue of Mining Global

Bass Metals acquires high grade Millie's Reward lithium project in Madagascar

Battery Minerals receives $20 million funding for Mozambique graphite projects

 

Stillwater will combine Sibanye-Stillwater’s existing, and contiguous, South African PGM assets with Lonmin's operations, including Lonmin's processing facilities, enabling the company to unlock operational synergies and become a fully integrated PGM producer in South Africa.

A key component of the deal for Londin, will see the creating of a larger and more resilient company, with greater geographical and commodity diversification, that is better able to withstand short-term commodity price and foreign exchange volatility

Commenting on the Offer, Neal Froneman, Chief Executive Officer of Sibanye-Stillwater, said: “The proposed combination with Lonmin positions the Enlarged Sibanye-Stillwater Group as a leading mine-to-market producer of PGMs in South Africa,”

“The flexibility inherent in the larger regional PGM footprint will create a more robust business, better able to withstand volatile PGM prices and exchange rates. Furthermore, the sizeable combined resource base, with its pipeline of advanced and early stage projects, also offers significant growth and value upside potential under appropriate economic and market circumstances.”

 

Share

Featured Articles

ABB and Codelco Partner on Chilean Mine Decarbonisation

State copper producer Codelco to collaborate with mines automation specialist ABB on digital solutions and electrification across Chilean mining operations

London Metal Exchange: Trading Hub With 450-Year History

From its origins in London's Royal Exchange to its acquisition by HK Exchanges and Clearing, the LME's history mirrors the evolution of the metals market

EY Survey Shows Capital As Top Mining Risk For 2025

Ernst & Young mining sector survey reveals the industry is experiencing capital allocation challenges against a backdrop of energy transition demands

Rio Tinto, BHP & Glencore 'Feeling the Pinch on Copper'

Supply Chain & Operations

Glencore & Schneider Partner on Copper Supply Chain

Sustainability

Elemental Holdings in Vanguard of Critical Metals Recycling

Sustainability