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Sibanye-Stillwater has entered into a purchase agreement to acquire Reldan, a precious metals recycling company based in Pennsylvania, US.

The acquisition is expected to enhance Sibanye’s exposure to the circular economy, which refers to a model of production and consumption involving sharing, recycling and reusing existing materials and products for as long as possible.

The acquisition has an enterprise value of $US211.5m ($332m) with a cash purchase consideration payable of $US155.4m ($244m).

The acquisition is expected to close during the first quarter of 2024, after receiving the applicable regulatory approvals.

“The strategic acquisition of Reldan is a further pivotal step in our company’s commitment to sustainability and our journey toward net zero,” Sibanye-Stillwater chief executive officer Neal Froneman said.

“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.”

Sibanye said its Reldan acquisition will complement its US platinum group metals (PGM) recycling business in Montana, US, while providing a solid base for further expansion.

It is expected that by combining Reldan with Sibanye’s Montana PGM recycling business, about 170,000 ounces (oz) of secondary gold and 400,000–450,000oz of secondary PGM production will be produced.

In Sibanye’s September 2023 quarterly (Q3) report, the company said its US PGM recycling operations processed 873 tonnes of material, which was 46 per cent lower than the amount recorded in Q3 2022.

About 24 tonnes of recycle inventory was on hand at the end of Q3 2023, an 18-tonne decrease compared to the 42 tonnes recorded in Q3 2022