Sibanye-Stillwater Acquires The Mt Lyell Copper Mine In Tasmania (Australia)
Sibanye-Stillwater Acquires The Mt Lyell Copper Mine In Tasmania (Australia). Sibanye-Stillwater advises that it has exercised the option to acquire the Mt Lyell copper mine in Tasmania (Australia), prior to its expiry on 5 November 2023.
Sibanye-Stillwater obtained the option to acquire 100% of Copper Mines of Tasmania Pty Ltd for a consideration of US$10 million from Vedanta Limited (the Mt Lyell Transaction), through the acquisition of New Century Resources Limited (NCR) outlined in the announcement dated 27 October 2021. Mt Lyell is a previously operated underground copper mine (with gold by-products), which commenced production in 1894 and operated until it was put on care and maintenance in 2014.
A feasibility study, which considers the re-establishment of the operation, is underway. Sibanye-Stillwater will review its options upon completion of the feasibility study. Neal Froneman, CEO of Sibanye-Stillwater commented: ”We identified copper as an essential metal necessary to enable the clean energy transition. Mt 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 has agreed to provide loan funding to, and a guarantee for and on behalf of, NCR to facilitate the completion of the Mt Lyell Transaction. Sibanye-Stillwater has also internally restructured the acquisition financing related to NCR (the “NCR Finance Restructuring”). The NCR Finance Restructuring has resulted in the transfer of loan financing obligations between the Group companies.
Sibanye-Stillwater is a multinational mining and metals processing group with a diverse portfolio of operations, projects and investments across five continents. The Group is also one of the foremost global recyclers of PGM autocatalysts and has interests in leading mine tailings retreatment operations. Sibanye-Stillwater has established itself as one of the world’s largest primary producers of platinum, palladium, and rhodium and is a top tier gold producer. It also produces and refines iridium and ruthenium, nickel, chrome, copper and cobalt. The Group has recently begun to build and diversify its asset portfolio into battery metals mining and processing and is increasing its presence in the circular economy by growing and diversifying its recycling and tailings reprocessing operations globally.
