Shares in Sibanye-Stillwater dropped recently after it said it had acquired US-based metals recycler Reldan Group of Companies (Reldan) for $155.4 million (R2.9 billion) as its CEO, Neal Froneman, hunts for worthy green metals assets.
Froneman is on the acquisition trail after the group, which has platinum group metals (PGM), gold and nickel operations in Africa, America and Europe, last week announced it had purchased a Tasmania copper mine in Australia for $10million.
The company is also diversifying into lithium, after recently buying the Keliber project in Finland where it has “initiated the construction of the lithium concentrator” and development of the Syväjärvi open-pit mine.
Sibanye-Stillwater said the acquisition was expected to be value accretive and positively contribute to the earnings and cash flow from day one. The deal was expected to close during the first quarter of 2024.
Froneman said: “The strategic acquisition of Reldan is a further pivotal step in our company’s commitment to sustainability and our journey toward net zero. Reldan’s exceptional environmental, governance, and safety standards position them as an industry leader, providing us with an exemplary platform to amplify our recycling efforts.”
“We are excited to work alongside the Reldan management team and employees to seamlessly integrate and scale our operations, reinforcing our dedication to the advancement of green metals and recycling,” he said.
Reldan is a Pennsylvania-based recycling group which reprocesses various waste streams, including industrial waste such as semiconductor scrap and plating waste and electronic waste such as mobile phones and tablets to recycle green precious metals.
Sibanye-Stillwater said the acquisition of Reldan complemented its US PGM recycling business in Montana, US, and enhanced its global exposure to the circular economy, providing a solid base for further expansion.
In addition to its US operations, Reldan has established a presence in Mexico and India, where it has forged strategic joint ventures with local partners.