RBPlat, Implats extend royalty mining agreement

JOHANNESBURG (miningweekly.com) – Royal Bafokeng Platinum (RBPlat) and Impala Platinum (Implats) have agreed to expand the mining area covered by the parties’ 2010 6 and 8 shafts royalty agreement, adding about 360 000 oz of platinum, palladium, rhodium and gold (4E) to Implats’ resource.

The royalty agreement affords Implats the right to mine a demarcated southern portion of the Bafokeng Rasimone platinum mine joint venture’s Boschkoppie property from Impala’s 6 and 8 shafts in return for a royalty payment.

Implats determines the rate of mining and bears all the mining, safety, health and environmental risks associated with mining the area.

Through the revised agreement, Implats now has the rights to an additional area to access and mine from its 6 shaft, resulting in the original royalty agreement life potentially being extended up to 2026.

This represents a 58% increase to the original 620 000 oz attributable to 6 shaft in terms of the original royalty agreement. The total resource included in the original agreement was 780 000 oz 4E of Upper Group 2 reef, comprising 620 000 oz 4E for 6 shaft and 160 000 oz 4E for 8 shaft.

The amended royalty agreement will enhance RBPlat’s royalty income cash flow from 2017 and extend the duration of the royalty income stream by a further five years.

RBPlat continues to seek value enhancing opportunities in line with its fourth strategic pillar.

The terms and conditions of the 20 shaft royalty agreement with Implats remain unchanged at 17.5% of revenue.