Implats joins Dynatec at Ambatovy
Impala Platinum Holdings (Implats) of Marshalltown, South Africa, and Dynatec Corp. of Richmond Hill, Ont., have agreed to join forces at Dynatec’s Ambatovy nickel laterite project. The feasibility study, released by Dynatec in February 2005, estimated that it will take an investment of US$2.25 billion to create a 60,000-tonnes/year nickel producer. The executive summary of the feasibility study is available at www.Dynatec.ca.
The agreement gives the partners equal ownership of the Ambatovy project. Implats will contribute US$50 million towards Dynatec’s share of equity contributions, and after that the partners will contribute equally. Together they will update the feasibility study and undertake detailed engineering studies that will be completed this year at a cost of US$60 million. The agreement further calls for senior project debt funding to be sought for at least 50% of the funding requirements. At a later date 25% of the project may be sold to a third party, thereby reducing Implats’ and Dynatec’s shares to 37.4% each.
Implats is the world’s second largest primary producer of platinum and a producer of nickel for over 30 years. The company has facilities in Springs, South Africa, which is slated be the site of the refinery for Ambatovy nickel. Implats’ website is at www.Implats.co.za.