Kilken Joint Venture (JV)
Andulela owns an effective 84% interest in Kilken Platinum (Pty) Limited which holds a 70% share in the Kilken JV giving Andulela an effective 59% interest in Kilken JV. Imbani Minerals (a BEE partner) owns the other 30% stake in the Kilken JV.
The Kilken JV is engaged in the business of metallurgy, the process of tailings concentrate and the related mining of Four Element Platinum Group Metals (platinum, palladium, rhodium and gold).
Sale of Tailings and Concentrate (STC)
Kilken JV concluded a STC agreement with Rustenburg Platinum Mines (RustPlat) on 17 November 2004 and commenced operating its processing business from leased premises owned by RustPlat at the Amandelbult platinum mine, near Rustenburg in the North-West Province of South Africa.
Kilken purchases tailings from RustPlat, processes the tailings and sells the resultant concentrate and platinum group metals back to RustPlat. The STC agreement will continue for so long as RustPlat produces tailings from the Amandelbult site.
Black Economic Empowerment Partner Imbani Minerals shares in 30% of the rights and obligations under the STC agreement in a joint venture with Kilken.
Leasing and services agreements with RustPlat are in place to facilitate the fulfilment of Kilkenís obligations under the STC agreement.
Kilken conclude an operational services agreement with Tailing Technology in May 2005 in terms of which Tailing Technology was appointed as an independent contractor, which undertakes the operation, maintenance and management of the tailings treatment facility as detailed in the STC agreement.