Gold extends end-of-year rally, set for best month since August

An illegal strike that led to the dismissal of over 600 employees at the Mototolo mine run by Anglo American Platinum has been resolved and the workers will be reinstated.

The deal, approved by shareholders on Tuesday, creates a company that will eclipse Anglo American Platinum Ltd. as the world’s biggest platinum miner and will rank second to Russia’s MMC Norilsk Nickel for palladium output.

The new discovery could add 25,000 metres of underground exploration drilling and 75,000 metres of definition drilling at Lac des Iles this year.

The deal also establishes the Sibanye-Stillwater Group as the world’s second-biggest palladium miner.

Bavura Holdings, in which Nigerian billionaire Benedict Peters is a major shareholder, would sign an agreement to mine platinum on Zimbabwe's mineral-rich Greak Dyke.

South Africa’s Public Investment Corp. faces a tough choice: back Sibanye Gold’s takeover of Lonmin, and take a hit on its investment, or scupper the deal and risk having to pony up more cash for the platinum miner.

Gold deliveries to central bank unit Fidelity Printers and Refiners, which buys all the country's gold, declined to 6.5 tonnes from 7.3 tonnes during the January-March quarter.

Sibanye Gold reiterated that its increased offer for Lonmin is final, but kept its option open to sweeten the deal for the platinum producer should a rival bid emerge.

The transaction would create the world’s No.2 platinum producer as Lonmin is the world’s third-largest while Sibanye-Stillwater is the fourth.