Royal Bafokeng Platinum and Implats renew and expand royalty deal
The original agreement between the two companies was struck in 2010 and revised in 2013, allowing Implats to access RBPlat's southern platinum reef at the Bafokeng Rasimone Platinum Mine from its 6 and 8 shafts in exchange for a royalty payment.
The royalty ranges between 5% and 25% of revenue earned and is paid to RBPlat and its partner, Anglo American Platinum (AMS), at the Bafokeng Rasimone mine.
Under the new agreement, the partners have given Implats access to more unmined resources of about 360,000oz of four platinum group elements from that company's 6 shaft, an increase of 58% over the original 620,000oz Implats had access to from the shaft.
Implats had access to 160,000oz from its 8 shaft.
"This amended royalty agreement will enhance RBPlat's royalty income cash flow from 2017 and extend the duration of the royalty income stream by a further five years," RBPlat said in a statement.