Impala Platinum (Implats), the world’s second largest platinum miner, is in talks to buy Absa Bank’s 14.84% indirect stake in Zimbabwe Platinum Mines (Zimplats).
Implats chief financial officer David Brown has confirmed discussions with Absa on its stake in Zimplats.
Absa has made it known that it is not interested in a long-term holding in Zimplats. “Increasing Implats’ shareholding in Zimplats is our long-term strategy,” Brown says. Zimplats is an attractive proposition for Implats as it is sitting on large platinum group metal resources and Implats wants to position itself for long-term access to that ore body, Brown adds.
“We are mindful of the risk in
- Zimbabwe. However, at the end of the day the long-term resources are in that country.”
Implats agreed in November not to buy more than 35% of Zimplats without making an offer to all minority shareholders. Implats and Absa hold just more than 50% in Zimplats through Impala Platinum (Zimbabwe), 70.62% owned by Implats and 29.38% by Absa.
Zimplats reported first quarter output of 39,674 ounces of platinum, palladium, rhodium and gold, up 1% on the previous quarter. Zimplats is a platinum development and mining company with 165mn ounces of platinum resources in the Great Dyke of Zimbabwe.