With the Competition Commission of South Africa’s approval, Bushveld said it remains on track to complete the deal on 31 October.
All that remains now is the approval of the South African Reserve Bank and for Vanchem to cease certain commercial agreements.
Talks with local banks to part-fund the acquisition through a new debt facility are also underway.
“Competition Commission approval marks yet another key milestone in closing this exciting transaction,” said chief executive Fortune Mojapelo.
“We remain on track to complete the acquisition within our targeted timeframe, at which point we will have significantly increased our processing capacity, giving us the ability to unlock even more of our existing large high grade resource base and produce a diverse array of products for the steel market, chemical industry and energy storage sector.
“Furthermore, significant progress is being made in respect of the preparation ahead of the integration of Vanchem post transaction closure.”
Doubles processing capacity
Vanchem’s processing plant is 200Km away from Bushveld’s own Mokopane project, which will be the primary source of ore.
Refurbishing the three kilns at the facility will cost an additional US$45mln and when finished will more than double Bushveld’s processing capacity to over 8,000mtV per year.
This takes Bushveld a substantial way towards its target of 10,000 mtV per year.