Impala Platinum has announced today (3rd October) that it is pressing ahead with its attempts to purchase Mvelaphanda Resources and Northam Platinum.

The world's second-biggest platinum producer claimed recently that it has been working on grandiose plans for creating a "South African-controlled platinum champion".

Now that possibility appears to be closer to fruition after a conditional $2.6 billion bid was launched for the pair in a move which could provide further consolidation in the country's mining industry.

David Brown, Chief Executive at Impala Platinum, said: "The combination of Implats, Northam and Mvela Resources will create a fully integrated, widely-held South African platinum producer with a strong balance sheet and cash flows to manage and develop a diverse portfolio of assets."

If the deal is accepted, it would increase Impala Platinum's platinum group metal resources to 300 million ounces - a rise of 50 per cent - and put it in a position to challenge Anglo Platinum as the world's largest producer.

The company is also well aware that the acquisition of Mvelaphanda - which is owned by black economic empowerment investors - would boost its credentials in this area.

Impala Platinum produced 1.9 million ounces of platinum last year, thus giving it a 30 per cent share of the global total of around seven million.



Source:

Impala to create a 'platinum champion' (02/10/08)
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