Anglo American Platinum to Invest $325M in South African Mine

(REUTERS) -- Anglo American Platinum, the world's largest producer of the precious metal, has agreed to help boost production at Anooraq Resources' Bokoni Platinum Mine in South Africa through a new 2.6 billion rand ($325 million) capital development programme.

This capital means the mine can now target 245,000 ounces by 2016, an increase of 100,000 ounces.

The new spending on the mine forms part of a restructuring, refinancing and recapitalisation deal unveiled by the companies on Thursday.

Essentially a lifeline for Anooraq, the new strategic plan ensures that Amplats shares in the mine's potential, which is promising given longer-term prospects for the platinum price.

A series of interrelated transactions will see Amplats acquire Anooraq's Boikgantsho project and the eastern section of the Ga-Phasha project for 1.7 billion rand.

While this will be put towards repaying Anooraq's 3 billion rand debt to Amplats, the smaller company will still recieve up to 1.3 billion rand under a consolidated debt facility.