The importance of the Booysendal mine in Impala Platinum's attempts to buy Mvelaphanda Resources and Northam Platinum was highlighted by industry figures yesterday (October 2nd).

It has been confirmed that the world's second-largest platinum producer has launched a $2.5 billion takeover bid for the two companies as it looks to create a "South African-controlled platinum champion".

But it is understood that the Booysendal, which is currently operated by Northam, is one of the main motivating factors behind the deal as it reportedly has around 103 million ounces of platinum group metals.

Indeed, Impala Chief Executive Officer David Brown admitted that the mine - which offers shallow digging that may bring quicker results than the company's current projects - is "a very significant prize".

David Shapiro, who helps manage $2 billion at Sasfin Holdings in Johannesburg, said: "Booysendal is going to be a great mine in a few years time. As the second largest producer in the world, if you still want to have a market for your product, you need to ensure some kind of security of supply."

Impala has confirmed that it believes Booysendal has the potential to produce over 480,000 oz of platinum group metals every year.



Source:

Impala Bids $2.5 Billion for Mvelaphanda and Northam (02/10/08)
http://www.bloomberg.com/apps/news?pid=20601116&sid=a2E8pKNlGFdc&refer=africa

Mvela's stock soars on talk of imminent Implats deal (01/10/08)
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSL135480520081001?pageNumber=1&virtualBrandChannel=0