Royal Bafokeng Platinum's operations will be impacted by the recently announced "force majeure"" at Anglo American Platinum's Rustenburg converter plant.
Amplats last week said it would temporarily shut down a converter plant at its Waterval smelter in the mining town of Rustenburg, for repairs due to damages caused by an explosion on 10 February 2020. The company declared a force majeure, Fin24 previously reported.
A force majeure describes a clause which exempts companies from fulfilling contractual obligations in cases of unforeseen disruptions beyond their control.
The force majeure will impact a Disposal of Concentrate Agreement between Royal Bafokeng Resources (RBR), a subsidiary of Royal Bafokeng Platinum (RBPlat) and Rustenburg Platinum Mines (RPM), which is a subsidiary of Amplats, RBPlat said in a notice to shareholders on Tuesday.
Given that the converter plant will be unavailable, for as much as 80 days, Rustenburg Platinum Mine will not be able to comply with its obligations of the agreement, RBPlat said.
"RBPlat and RBR are currently reviewing the force majeure notice. RBR currently sells all of its concentrate to RPM and is in discussions with Amplats and RPM to explore possible ways of addressing the issues raised by RPM," the notice read.
In the meantime Royal Bafokeng Resources will not be delivering concentrate to Rustenburg Platinum Mine, pending the outcome of discussions, the notice read.
RBPlat is still quantifying the impact of the force majeure.
RBPlats share price hardly moved on the news. Having opened at R40, it was trading less than a percent weaker at R39.61 justs before 11:00.
Amplats last month announced that Natascha Viljoen will be
its new CEO as Chris Griffith is stepping down after seven years at the helm
and 30 years at the company.