The Chairman of Mvelaphanda Resources and Northam Platinum has explained that their merger with Impala Platinum will create the world's biggest empowered miner.

Impala, the world's second biggest platinum producer, has tabled a R22 billion bid for the two companies, comprising 70 per cent in shares and 30 per cent in cash.

Now Lazarus Zim has claimed that the deal will help operations at the promising shallow mine Booysendal and also see Impala become the leading empowerment miner in South Africa.

He said: "We need R8.4-billion to develop Booysendal. Impala's strong balance sheet will make that easier to finance, plus bring in the group's experts.

"It also sees Mvela partner Royal Bafokeng (a significant shareholder in Impala) for the first time to create this country's biggest empowered mining group, and getting blacks to work together is very important to me."

Impala CEO David Brown admitted recently that Booysendal - where production is set to commence in 2012 - is the jewel in the deal as the company has been looking for platinum assets for some time.

He said: "We are taking a view that in the medium to long term, the demand fundamentals for platinum are strong despite the recent sharp sell-off."

Mr Zim will relinquish his position as Chairman of both Mvelaphanda and Northam as part of the merger and will be appointed as Deputy Chairman of the new-look Impala.



Source:

Zim building a world class platinum empire (05/10/08)
http://www.thetimes.co.za/Business/BusinessTimes/Article1.aspx?id=856123