Anglo American has detailed its platinum demerger plan, a cornerstone of which hinges on the retention of a key stake in the world’s largest platinum pot.
The miner has been putting its platinum demerger plans into action for some time, but the end is certainly in sight now that Anglo announced its final platinum dividend yesterday.
The proceeds, along with a final cash dividend, totalled $US900 million ($1.4 billion), which will be payable to all Anglo American Platinum shareholders ahead of the demerger.
The payment of the additional cash dividend forms part of Anglo American Platinum’s (Amplats) finalisation of its standalone capital structure.
Anglo is a 67 per cent shareholder in Amplats and therefore expects to receive approximately $600 million ($944.5 million) from these dividends.
The demerger is officially set to be done and dusted by the end of June 2025. Once complete, Anglo will retains one fifth of Amplats shares.
Anglo has held the title of the world’s largest platinum miner for years thanks to the crown jewel in its platinum crown, the Mogalakwena open-pit mine in South Africa.
The mine was established in 1993, is the largest open pit platinum mine in the world.
“Consistent with our commitment to deliver a responsible demerger, Anglo American intends to retain a 19.9 per cent shareholding in Anglo American Platinum in order to further help manage flowback by reducing the absolute size of the shareholding that will be demerged,” Anglo chief executive Duncan Wanblad said.
“Anglo American will no longer have any representation on the Anglo American Platinum board post demerger and we intend to exit our residual shareholding responsibly over time, and subject to customary lock-up arrangements.”
Anglo will seek shareholder approval for the Amplats demerger at its annual general meeting on April 30.
The demerger is part of a strategic overhaul of the company following the takeover efforts of mining major BHP last year.
Anglo will also sell or float its diamond arm, De Beers, in an aim to hone in on copper and iron ore.
Other non-core Anglo assets like its coal portfolio have also been on the chopping block, with the miner finding new homes for almost every single project and mine.
