Sibanye-Stillwater has announced that it will acquire the Mount Lyell copper mine in Tasmania.
“We identified copper as an essential metal necessary to enable the clean energy transition,” Sibanye-Stillwater chief executive officer Neal Froneman said. “Mount Lyell potentially provides a low-cost exposure to copper, adding primary production of copper to our current lithium and nickel exposure.
“We look forward to working with all the local stakeholders including the Tasmanian Government as we consider the potential advancement of this opportunity.”
Sibanye-Stillwater originally received the option to acquire 100 per cent of Copper Mines of Tasmania – which owns Mount Lyell – for $US10 million ($15.6 million) from Vedanta Resources through its acquisition of New Century Resources.
In late October 2021, New Century signed a two-year option agreement with Vedanta subsidiary Monte Cello BV to acquire Copper Mines of Tasmania.
A feasibility study for the Mount Lyell copper mine to consider the re-establishment of the operation is currently underway. Sibanye-Stillwater plans to review its options upon the feasibility study’s completion.
The Tasmanian Government welcomed the announcement.
“Our support has included a $9.5 million package to undertake works supporting the recommencement of mining operations as well as a $25 million assistance package to be made available once mining operations recommence. This package remains on the table for a new owner, subject to appropriate due diligence,” Tasmanian Resources Minister Felix Ellis said.
Sibanye-Stillwater subsidiary Sibanye Rustenburg has also announced that it has assumed full operation of the Kroondal operation in the northwest province of South Africa, effective from November 1.
The change was a result of Sibanye Rustenburg’s transaction with Anglo American subsidiary Rustenburg Platinum Mines (RPM) being moved forward, and it acquiring RPM’s 50 per cent share of the Kroondal pool and share agreement (PSA).
The deal was originally struck in late January 2022.
“Concluding the transaction earlier enables effective consolidation of these operations under a single owner,” Froneman said.
“By extending the operating life of the Kroondal operation, which as a standalone operation was constrained by the existing PSA agreement. We are now able to realise the true potential of our adjacent resources by utilising the mechanised and low-cost Kroondal operation to mine across the boundary with the Rustenburg operation.
“This will accelerate the extraction of more remote parts of the Rustenburg operation orebody, expected to sustain employment for thousands of employees until 2029 and ensure the creation of significant shared value for all stakeholders in the region.”
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