South Africa: After Gobbling Up Lonmin, the Sibanye Juggernaut Rolls On

Photo: Pixabay
(file photo)

Sibanye-Stillwater and Lonmin shareholders on Tuesday 28 May 2019 approved a takeover offer by the former for the latter. This marks the end of one era in South African platinum as Lonmin, formerly linked to Lonrho, rides off into the sunset, with a history stretching back over a century. And a new era is in the offing, as Sibanye becomes the world's largest primary producer of platinum group metals (PGMs), with an eye on expanding into battery metals.

The Sibanye juggernaut keeps on rolling. Formed in 2013 as a spin-off that retained Gold Fields' deep-level and labour-intensive bullion assets in South Africa, the company has expanded aggressively into platinum. It has picked up, among others, the Rustenburg assets of Anglo American Platinum (Amplats) and the high-grade and palladium-rich Stillwater operation in the US state of Montana. Now, in an all-share deal, it has swallowed troubled platinum producer Lonmin. When the dust settles, Sibanye will be the world's top primary producer of PGMs.

Lonmin, by contrast, was a decaying husk of its former self, a company that was burning cash and standing on the edge of the abyss. Its ebbs and flows mirrored the turbulent history of South Africa's mining industry....

See What Everyone is Watching

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.