Anglo American Says Goodbye to Platinum: What the Valterra Demerger Means for SA Mining

On a cool May evening, as the month quietly wrapped up, one of the biggest names in mining turned the page on a 30-year chapter. Anglo American, the UK-based global mining giant, officially let go of its controlling interest in its South African platinum arm, completing the demerger of what is now known as Valterra Platinum.

This wasn’t a surprise move. Shareholders had already given the green light back in April, signaling that it was time for change. And on Saturday, 31 May 2025, that change became official. By the next morning, Valterra’s shares were ready to be traded on both the London and Johannesburg stock exchanges.

From JCI to Valterra: A Mining Legacy

It’s been quite the journey. The platinum unit, once known as Anglo American Platinum, was born out of the unbundling of Johannesburg Consolidated Investments (JCI) in 1995. Over the years, it became a central part of Anglo American’s South African footprint, helping the company build one of the largest platinum operations in the world.

But times change. And as the demand for platinum—used mainly in catalytic converters for internal combustion engines—wanes due to the rise of electric vehicles, so too has the focus shifted at Anglo.

The Strategy Behind the Split

According to Anglo American CEO Duncan Wanblad, the demerger is about sharpening the company’s focus. With the platinum business off its books, the mining group can now zero in on its copper, premium iron ore and crop nutrient operations—areas where it sees more long-term growth.

“This moment is significant,” Wanblad shared. “Valterra Platinum has been an integral part of our business for decades, but the time has come for it to unlock its own potential.”

While Anglo American has held onto a 19.9% minority stake, it made it clear that this is only temporary. The group intends to offload the rest in time, though it has committed to hold for at least 90 days post-demerger.

Valterra Platinum: Starting Strong, but Lean

With its new name and independent path, Valterra Platinum wasted no time making waves. Despite a drop in revenue and earnings in 2024, the company declared a surprise R15.7 billion special dividend—a bold move that gave shareholders a hefty R59 per share in additional payouts. That’s on top of the standard R3 per share final dividend.

But bold comes with risk. After that payout, Valterra is left with just R1.1 billion in cash, a slim buffer for a company in a notoriously cyclical industry. The platinum group metals (PGM) market has taken a hit lately, with prices falling amid a sluggish global economy and the long-term threat of EVs pushing platinum to the sidelines.

A Future Still Worth Fighting For

Despite the challenges, Valterra CEO Craig Miller is optimistic. He believes South Africa’s PGM industry still has plenty of life left in it. “This isn’t just about mining. PGMs are a national advantage,” Miller said, emphasizing that these minerals continue to appear on several global critical minerals lists.

South Africa, after all, still holds a massive chunk of the world’s known platinum resources. That fact alone makes Valterra’s future strategically important—not just for investors, but for the country’s economic trajectory.

Miller also underscored that Valterra isn’t going it alone without preparation. “We have the people, the skills, and the systems we need. This new chapter is not just a challenge; it’s an opportunity,” he said.

What This Means for South Africa

The unbundling of Valterra Platinum is more than just a corporate move. It’s a symbolic shift in the mining landscape, reflecting how global priorities and market forces are reshaping one of South Africa’s foundational industries.

While Anglo American’s exit might feel like the end of an era, it could also mark the beginning of a more agile, independent platinum player ready to take on new markets and challenges with fresh focus.

Don’t Miss the Bigger Picture

The mining world is changing fast. With companies like Anglo American streamlining operations and others like Valterra stepping into the spotlight, now is the time to pay attention.

Stay informed. Follow Valterra’s journey. Watch the markets. The next big shift in South African mining might already be underway.

{Source: BusinessTech}

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