Dormant PGMs, chrome mine acquired by job-creating JSE AltX-listed resource investor

JOHANNESBURG (miningweekly.com) - Johannesburg Stock Exchange AltX-listed company Mantengu Mining has been provided with a platinum group metals (PGMs) and chrome mining industry opportunity by PGMs major Sibanye-Stillwater, the State-owned Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA), through the company's acquisition of the dormant Blue Ridge Platinum Mine.

“Without the support of Sibanye-Stillwater, the IDC and DBSA, this would not have been possible,” Mantengu CEO Michael Miller stated in a release to Mining Weekly, which coincided with a Stock Exchange News Service announcement on Thursday, October 10.

Mantengu, which describes itself as a resource company focused on investments in the mining, mining services and energy sectors, has acquired the loans owing by Blue Ridge for what is described as a nominal amount.  

Currently, Blue Ridge owes more than R1.1-billion to creditors including Sibanye-Stillwater, IDC and DBSA, which follows Sibanye-Stillwater in 2016 gaining 50% of Blue Ridge through the acquisition of Aquarius Platinum, with the remaining 50% held by empowered group Imbani Platinum SPV.

Located in South Africa’s Limpopo province, Blue Ridge is an upper group two (UG2) PGM mine with an integrated ore processing plant that was placed on care and maintenance in 2011 by Aquarius.

The operation is now scheduled to resume operations under Mantengu’s management once all conditions are approved.

“Core to our investment decision was Mantengu’s desire to create jobs and strengthen local empowerment,” Miller added.

“We endorse the transaction structure that ensures direct equity participation for communities and employees in Blue Ridge,” Sibanye-Stillwater CEO Neal Froneman commented.

Mantengu chairperson Jonas Tshikundamalema spoke of the mine being poised to become a sustainable and profitable asset that supports the local economy.

Following the acquisition, Mantengu will initially take ownership of 100% of the ordinary shares and debt claims of Blue Ridge. Subsequently, 30% of the ordinary shares will be distributed to strategic empowerment partners, including 5% allocated to newly formed employee and community trusts respectively to ensure that the mine’s employees and local communities share in its success.

Mantengu plans to implement a phased investment strategy for Blue Ridge, which comes with one-million tonnes of chrome and PGMs tailings.

Initial investment will be in plant and equipment to process the tailings into up to 375 000 t of chrome concentrate and 35 000 oz of PGMs at low cost.

In addition, Mantengu will invest in an 18-month bankable feasibility study into the underground UG2 mining operations.

If the study confirms economic viability, Mantengu will look to pursue underground mining at the shallow Blue Ridge, which enables mechanised mining.

Tshikundamalema added: “This isn’t just a mine acquisition; it’s an investment in the future of our communities and the prosperity of our nation. We believe in South Africa’s resource potential and in the power of innovative, sustainable business practices to unlock it.”