The local mining industry has been hammered by falling prices and rising costs with more than half of the country’s gold mines being unprofitable.
However, South Africa's Sibanye Gold has offered $294 million to buy Aquarius Platinum in its latest bid to enter the platinum sector.
CapeTalk/702’s Stephen Grootes today unpacked the deal with mining analyst and consultant Mamokgethi Molopyane.
Listen to the conversation below:
Sibanye Gold is doing what anybody who has an interest in the sector would do, buying while people are still at a low and you can acquire assets at a much cheaper price compared to buying at a later stage.— Mamokgethi Molopyane, Mining Analyst and Consultant at Voodoo Consultancy
Molopyane said the CEO of Sibanye Gold two years ago mentioned that they would be looking at moving into the platinum sector and this showed that he remained true to his word.
This article first appeared on 702 : Sibanye Gold makes $294m bid for Aquarius Platinum