ANGLO AMERICAN PLATINUM LIMITED - Anglo American Platinum agrees to dispose of its interest in the Kroondal and Marikana pool-and-share agreements

Anglo American Platinum agrees to dispose of its interest in the Kroondal and Marikana pool-and-share agreements

Anglo American Platinum Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
(“The Company" or "Anglo American Platinum")

31 January 2022


Anglo American Platinum agrees to dispose of its interest in the Kroondal and Marikana pool-and-
share agreements

Anglo American Platinum has agreed to dispose of its 50% interest in the Kroondal pool-and-share agreement
(“Kroondal PSA”) and the Marikana pool-and-share agreement (“Marikana PSA”), (collectively the “PSAs”) to Sibanye-
Stillwater Limited (“Sibanye-Stillwater”), the other 50% owner of the PSAs.

CEO of Anglo American Platinum, Natascha Viljoen said:

“We are pleased to have agreed to sell our 50% interest in the PSAs to Sibanye-Stillwater. Whilst the Marikana
operation is on care and maintenance, the Kroondal operation has a short mine life under the current PSA terms. By
enabling Kroondal to mine through the boundary at Sibanye-Stillwater’s Rustenburg operations, we will extract our
attributable share of the Kroondal reserves more quickly and efficiently than under the previous mine plan, unlocking
greater value for Anglo American Platinum and Sibanye-Stillwater. This transaction will also allow for the Kroondal life-
of-mine to be extended under Sibanye-Stillwater’s ownership, sustaining employment at the operation for longer.”

Background

In 2003, Anglo American Platinum entered into the Kroondal PSA with Aquarius Platinum (“Aquarius”) in which both
companies agreed to pool their assets for mutual benefit, whilst retaining individual ownership. Since then, there have
been several transactions that contributed further ground to the PSA to maintain production levels. The companies
entered into a subsequent agreement for the Marikana PSA in 2005.

A life-of-mine purchase-of-concentrate (POC) agreement was entered into when the PSAs were formed, in which our
partner’s share of concentrate produced is sold to Anglo American Platinum. Sibanye-Stillwater became Anglo
American Platinum’s partner in the PSAs following its acquisition of the entire issued share capital of Aquarius, in
2016.

Following the restructuring and repositioning of Anglo American Platinum’s portfolio, Kroondal is not considered a
strategic asset in the portfolio due to its short remaining life. The two companies have worked together to optimise the
Kroondal mine plan, which has delivered over R8 billion in EBITDA between 2017 and 2020 for Anglo American
Platinum. The next step for value creation was to optimise the mine plan to include resource from Sibanye-Stillwater’s
adjacent operations to mitigate the impact of declining production as the mine approached its end of life, and for the
Company to exit its interest in Kroondal.

Overview of the transaction

As at 31 December 2020, Kroondal had Mineral Reserves of 0.7 million 4E ounces (and an inclusive Mineral Resource
of 1.30 million 4E ounces). The Mineral Reserve could be economically extracted, under the existing Kroondal PSA
arrangement, over the remaining life of mine to 2025.
                                                                                                                     
Under the terms of the new agreements, Kroondal’s infrastructure will be used to mine into Sibanye-Stillwater’s
adjacent Rustenburg resource. As a result, Anglo American Platinum will generate cash flows from its 50% share of
the 1.35 million 4E ounces earlier (by the end of 2023), at a lower cost of production (after optimising the mine plan to
extract the resource from both the Kroondal and Rustenburg mining right areas) and under the pre-existing Kroondal
purchase of concentrate terms.

Thereafter, Anglo American Platinum will exit its interest in the PSAs, transferring all assets and liabilities to Sibanye-
Stillwater, with no outstanding economic interest in the Kroondal mining operation. The Company will continue to
process the concentrate produced from the Kroondal concentrators until 2026 under the toll-and-purchase agreement
with Sibanye-Stillwater which was concluded as part of the Rustenburg disposal transaction (refer to Anglo American
Platinum announcements dated 9 September 2015 and 1 November 2016).

The Marikana PSA has an inclusive Mineral Resource of 4.7 million 4E ounces attributable to Anglo American
Platinum. The Mineral Resource in Anglo American Platinum’s view cannot be economically extracted, and therefore
the Marikana operation was placed on care and maintenance in 2012.
Economic consideration

Under the terms of the transaction, Sibanye-Stillwater will acquire Anglo American Platinum’s interest in both the
Kroondal PSA and Marikana PSA for a purchase price of R1. In exchange, Sibanye-Stillwater will take over all closure
costs and rehabilitation liabilities. In addition, should the remaining unmined Merensky mineralisation (which is not
declared as a Mineral Resource) be mined in future, the Company will earn a deferred compensation on a Rand per
tonne mined (the rate is dependent on metal prices at that time).
Conditions precedent

The terms of the transaction are conditional on mandatory regulatory approvals including Competition Commission
approval and Section 11 ministerial consent to transfer the mining right, as well as the delivery of 1.35 million 4E
ounces of metal in concentrate by the Kroondal PSA (on a 100% basis).

Sponsor:
Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities


For further information, please contact:

Investors:                                                       Media:
Emma Chapman                                                     Nomonde Ndwalaza
(SA) +27 (0) 76 480 1570                                         (SA) +27 (0) 79 932 1586
emma.chapman@angloamerican.com                             nomonde.ndwalaza@angloamerican.com


Notes to editors:

Anglo American Platinum Limited is a member of the Anglo American plc Group and is a leading primary producer of
platinum group metals. The company is listed on the Johannesburg Securities Exchange (JSE). Its mining, smelting,
and refining operations are based in South Africa. Elsewhere in the world, the Group owns Unki Platinum Mine and
smelter in Zimbabwe. Anglo American Platinum has two joint operations with several historically disadvantaged South
African consortia as part of its commitment to the transformation of the mining industry. Anglo American Platinum is
committed to the highest standards of safety and continues to make a meaningful and sustainable difference in the
development of the communities around its operations.

www.angloamericanplatinum.com
                                                                                                                  [OFFICIAL]




Anglo American is a leading global mining company, and our products are the essential ingredients in almost every
aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development
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value from precious natural resources for the benefit of the communities and countries in which we operate, for society
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www.angloamerican.com

Date: 31-01-2022 08:00:00
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