Zimbabwe may sell 40% stake in a key gold mine to raise capital
Zimbabwe’s largest gold producer is negotiating with potential partners to boost production at its Shamva mine.
Toronto-based Atlatsa Resources (TSXV:ATL) has made good on its stated intention to shut its Bokoni platinum mine in Limpopo province, South Africa.
The closure is part of a debt-cancellation and restructuring deal with joint venture partner Anglo American Platinum (Amplats), the world’s number one platinum group metals miner.
SABC News reported last week that over 400 workers at Bokoni have already been let go, as the mine prepares to slam the brakes on its operations. Over 2,000 employees are expected to lose their jobs. A spokesman for the National Union of Mineworkers said the mine will be put under care and maintenance and each employee will receive a severance package of two and a half weeks for each year of service.
As part of a three-year turnaround program, Bokoni laid off more than 6,000 workers, a third of its workforce, in 2015 and last year halted open pit operations and expansion plans.
Amplats will write off around C$400m of Atlatsa debt and acquire two adjacent exploration blocks and mining rights at Bokoni. Amplats in July warned its half-year profits could fall by two-thirds due to a stronger South African currency, lower sales and impairments.
The South African mining sector has been under severe pressure amid labour disputes, rising costs and weak prices exacerbated by the introduction and subsequent suspension in July of a new mining charter.
2 Comments
Handira
Editor
The caption on the picture reads “The Bokoni mine produced 170,000t of platinum group metals last year. (Image courtesy of Atlatsa)”.
170 000t? Do you mean ounces?
roger
Lonmin has produced with nearly full capacity for many years with big losses ???what kind of business is that??