OVERVIEW workers who suffer retrenchment will receive a pay-out to support them while they look for new employment. The overall picture for platinum group metals (PGM) looks rather better, with chrome in particular rallying in the second half of 2016. Palladium and rhodium have also increased in price. The results produced by Royal Bafokeng Platinum (RBPlat) in 2016 reflected how things have changed since the platinum boom of a just a few years ago. RBPlat (originally a joint venture between Anglo American Platinum and Royal Bafokeng Holdings) turned a profit of nearly R600-million in 2014 but the lower prices have pushed back the construction of the company’s Styldrift I Project and led to reduced production at the Bafokeng Rasimone mine, resulting in a loss in 2015. Royal Bafokeng Holdings is the investment vehicle of the 100 000 members of the S et s w ana - sp eak in g R oy al Bafokeng Nation who live in the Rustenburg valley. Another partnership with a community is the Sedibelo Platinum mine, where the local Bakgatla traditional authority has a 26% stake on behalf of the community (in the Moses Kotane Municipality of the Bojanala district). Main community projects concentrate on water supply, roads and bursaries for local students. A hydroponic farm and a brickworks have been initiated. Sedibelo (formerly Platmin), which received investments
from the Industrial Development Corporation (2012) and Pallinghurst (2014), has a 100-Moz PGM resource base.
Buying and selling • •
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Impala Platinum is selling its 65% share in Impala Chrome, an extraction business which is located in Rustenburg. The Evraz Group has sold its 78.8% in Brits-based Vametco, a mine and plant that produces vanadium. Bushveld Minerals, which is listed on the Alternative Investment Market in London, is the buyer. Rustenburg Platinum Mines Limited (including three mine shafts, two concentrating plants and on-site chrome recovery plant) has been sold by Anglo American to Sibanye Gold. This is part of the broader Anglo American strategy to divest itself of a number of its assets, and also points to a strong acquisitions strategy that Sibanye Gold has embarked on since it was established in 2012. With some other acquisitions, Sibanye now controls about 800 000 ounces of platinum and uranium as a by-product of its gold production. With the possibility that it will also buy coal mines, Sibanye Gold will likely change its name in the near future as it looks more like a resources company.
SEZ and SPI The Platinum Valley Special Economic Zone (SEZ) is to be established at Mogwase in the Bojanala District, north of Rustenburg and east of Sun City. When fully developed, 200ha of land will be given over to three infrastructure facilities comprising Logistics, Light Manufacturing and Heavy Manufacturing. Areas of investment that are expected to grow fastest include fuel cell technology (in which platinum is a vital component), machinery for mining, energy generation and renewable energy component manufacturing. A range of incentives will be available to potential investors via the national Department of Trade and Industry (dti). By way of example, the 121 Tax Allowance Incentive offers capital investment allowances and training support up to R900-million for new or existing industrial projects. There are a number of other incentives specific to investors in an SEZ. The Seda Platinum Incubator (SPI) is an initiative of the Platinum Trust of South Africa and is funded by the Small Enterprise Development Agency (Seda) through its Seda Technology Programme (Stp) with the support of the North West Provincial Government and private companies. Located in Rustenburg, the SPI trains people through the making of jewellery, chiefly the design and manufacture of platinum group
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NORTH WEST BUSINESS 2017