Multinational mining and metals processing group Sibanye-Stillwater announced the acquisition of the Reldan Group of Companies, a US-based metals recycler.
The acquisition, valued at $211.5-million with a cash purchase consideration of $155.4-million, not only enhances the company’s exposure to the circular economy, but also complements its US platinum group metals (PGMs) recycling business in Montana.
Between Reldan and Sibanye’s US PGMs recycling business in Montana, about 170 000 oz of secondary gold and 400 000 oz to 450 000 oz of secondary PGMs production will be produced.
“The strategic acquisition of Reldan is a further pivotal step in our company’s commitment to sustainability and our journey toward net zero,” said CEO Neal Froneman.
He commended Reldan’s “exceptional environmental, governance and safety standards position”, highlighting that it offers an “exemplary platform” to amplify Sibanye-Stillwater’s recycling efforts.
Reldan, headquartered in Pennsylvania, specialises in reprocessing various waste streams, including industrial waste (semiconductor scrap, plating waste, et cetera) and electronic waste (mobile phones, tablets, et cetera) to recycle green precious metals.
In the 12 months ending December 2022, Reldan processed about 23-million pounds of waste and produced 145 000 oz of gold, 1.9-million ounces of silver, 22 000 oz of palladium, 25 000 oz of platinum, and 3.4-million pounds of copper.
Reldan boasts a seasoned management team with over four decades of operational experience. Besides its US operations, Reldan has established a presence in Mexico and India, where it has forged strategic joint ventures (JV) with local partners. In India, Reldan has a JV with Re Sustainability, one of Asia’s leading integrated waste management organisations, enabling it to tap into the fast-growing market for precious metals recycling in India.
In 2022, Reldan generated $371-million revenue, $42-million earnings before interest, taxes, depreciation and amortisation, $39-million in earnings and $28-million in free cash flow.
The transaction is slated to close during the first quarter of 2024, subject to receipt of applicable regulatory approvals.
