JOHANNESBURG – African Rainbow Minerals, a South African diversified miner, said on Monday it was interested in acquiring Anglo American Platinum (Amplats) assets if they became available.
Anglo American, which holds 80% of Amplats, said earlier this month that it was reviewing its investment in the world's largest platinum producer.
The platinum business has not matched the production, productivity and safety levels of earlier years while returns have been in decline.
While Anglo has not ruled out spinning off what would be a $15-billion asset, analysts believe it is more likely to sell the mines or close certain shafts.
"We are very, very close to Anglo Platinum, we know all the inside discussions and we are engaging in that. I think something can come out of that," ARM CEO André Wilkens told Reuters in an interview after the group unveiled its first-half results.
ARM, which has a 50% stake in two South African platinum mines, Modikwa and Two Rivers, is also evaluating three acquisitions in the platinum sector that could cost up to R6-billion.
"There are three opportunities we are looking at and those together will probably require purchase money of R5-billion or R6-billion and then we need to capitalise those assets," he said.
"So we are probably going to need over the next four years R6-billion to R8-billion in platinum alone but then we can double, even treble our current capacity," said Wilkens.
The company's strategy is to try to balance the contribution its coal, copper and platinum business makes to revenue with its ferrous division, which made up 61% of revenue in the company's first half.
ARM executive chairperson Patrice Motsepe said the company was still seeking opportunities elsewhere in Africa. The company holds 40% of the Konkola North copper mine in Zambia, which is being developed with Brazil's Vale.
Both partners have already committed $400-million to the project and Motsepe said they would be considering a further $500-million investment within the next two to three years.
Edited by: Reuters
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