Chinese gatvol – Walk away from SA Platinum deal

JOHANNESBURG (Reuters) – Aquarius Platinum's planned sale of stakes in a small mine and project to a Chinese consortium for $37 million had been terminated after it failed to get South African regulatory approval, the mid-tier producer said on Wednesday.

China has made few direct forays into platinum production in South Africa, which sits on close to 80 percent of the world's known reserves of the precious metal used for emissions-capping catalytic converters in automobiles.

"As at 14 October 2014 certain South African regulatory approvals had regrettably not yet been granted … as a result of which, the agreement terminated," the platinum producer said in a statement.

The planned sale was in the company's interest in the Blue Ridge mine, which has not been operational since 2011, and its Sheba project to a Chinese consortium led by the China National Arts & Crafts (Group) Corporation.

Although China has so far not made many direct investments in the sector, a rare exception is Wesizwe Platinum, which is in the process of building a mine. Its main strategic shareholders comprise a Chinese consortium headed by mining giant Jinchuan, which has a 45 percent stake in the group.

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