End of an era for British mining giant in South Africa
Anglo American has completed its demerger of Valterra Platinum, formerly known as Anglo American Platinum.
UK-based Anglo American has completed the demerger of roughly 51% of its interest in Valterra Platinum after receiving overwhelming approval from shareholders in April.
The demerger took effect on Saturday, 31 May 2025, with the share consolidation becoming effective on Sunday, 1 June 2025.
Anglo American Platinum was founded in 1995 after the unbundling of Johannesburg Consolidated Investments (JCI) following its takeover from the Anglo American Group.
Although Valterra Platinum was a key player for its parent company, Anglo American announced that it would cut back its platinum group metal (PGM) holdings in South Africa.
Platinum is primarily used in catalytic converters in internal combustion engine (ICE) vehicles to reduce emissions. The sector has faced pressure as electric vehicles do not catalytic converters.
Anglo American’s restructuring has seen the group unbundle key assets, including its platinum business, as it looks to free up capital and management time.
The group will, however, keep its stake in Kumba Iron Ore.
As per the demerger, Valterra Platinum’s new ordinary shares will commence trading today on the London and Johannesburg Stock Exchanges.
“This is an important moment for both Anglo American and Valterra Platinum,” said Duncan Wanblad, Chief Executive of Anglo American.
“This is a major step in our plan to unlock the inherent value in our portfolio as a whole, with enhanced focus on our world-class positions in copper, premium iron ore and crop nutrients.”
He added that although Valterra Platinum has been a major part of the company for many years, it is now the right time for it to optimise its value creation prospects on an independent path.
“It’s an outstanding business and team, and I have every confidence that Valterra Platinum will thrive as a leader in the global platinum group metals industry,” said Wanblad.
Following the demerger, Anglo American will continue to hold roughly 19.9% of Valterra Platinum and intends to retain this shareholding for at least 90 days following the demerger.
After the 90 days have lapsed, it will be up to the group to determine whether it will sell off more of its holdings or not. It has made it clear that it plans to exit the business fully over time.
Going at it alone
Anglo American recently received a parting gift from Valterra Platinum, which declared a massive special dividend despite a drop in revenue and headline earnings for the 2024 financial year.
The group’s final dividend totalled R800 million, as per the company’s 40% payout ratio, totalling R3 per share.
However, the group also declared an additional cash dividend of R59 per share, totalling R15.7 billion, from the company’s cash reserves.
The additional cash dividend left the miner with only R1.1 billion in cash, which is a worrying amount for a cyclical company.
The PGM sector has been severely hampered in recent times amidst declining prices during a global economic slowdown.
Concerns over the industry’s future are also present, as electric vehicles do not require platinum to reduce emissions.
Valterra said that the increased dividends reflect its confidence in its ongoing ability to generate cash flow.
Valterra CEO Craig Miller said that despite the volatility, South Africa’s PMG sector still has a lot of potential, with the minerals being listed on many critical minerals lists.
South Africa hosts a large number of the world’s known resources, making it critically important.
Miller said he is confident that the company will be able to go it alone, and that the necessary skills, people, processes and systems are in place to make a success of the group.
“PGMs are not just a resource. They’re a national advantage, and our new name as Valterra Platinum reflects our ambition, our unity of being one team with one purpose and one future,” he said.
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