Another international giant calls it quits in South Africa

In August, the group announced receiving a binding offer from private mining and metals trading company One Chrome to acquire its chrome and PGM operations in South Africa. 

The deal would see the group receive $90 million (R1.5 billion) for the chrome and PGM business that reached a high level of maturity. 

The group noted that further growth opportunities were limited, mostly related to co-investing in mining ventures requiring significant capital outlay.

The disposal allows it to focus on its copper business in Zambia, which requires a dedicated capital structure and management team.

The group believes that there are material opportunities to deliver growth at the existing sites in Zambia by expanding the copper-producing assets. 

It noted that strong copper markets support higher earnings potential, resulting in higher margins than those of chrome.

With the expected expansion of the world’s growth in electrification, demand for copper is expected to remain high. 

Under the sale, Jubilee retains all current rights to the Tjate Platinum mining project, which offers Jubilee continued exposure to the potential upside of the PGM market while focusing on Zambia. 

Shareholders approved the sale transaction in late August, with the group now receiving the first tranche of the sale consideration of $15 million (R255 million). 

The company has also made detailed submissions to the Competition Commission. With follow-up questions, meetings and information requests ongoing. 

The last major condition precedent is audit-related, with this work underway and progressing well. The completion of the sale is expected by the end of the 2025 calendar year. 

Not the first 

Jubilee joins a host of international companies that are either quitting or reducing their presence in South Africa. This includes: 

• Anglo American (Mining)
• HSBC (Banking)
• BNP Paribas (Banking)
• IG Group (Finance) 
• Nielsen (Media Analytics)
• Bain & Company (Consulting)
• Shell (Energy)

In the mining space, Anglo American exited its platinum business as part of a global restructuring to counter a takeover bid from BHP, which also wanted to eliminate the platinum business. 

Anglo American Platinum was unbundled, renamed Valterra Platinum, and listed on the London Stock Exchange. 

This move resulted in a massive outflow of capital from South Africa, with the nation’s foreign direct investment seeing outflows of R73.5 billion in Q2 2025. 

The South African Reserve Bank said in its Quarterly Bulletin that the outflows were mainly due to Anglo American spinning off its platinum business. 

In a positive note, however, Anglo American, which is soon going to merge with Canadian mining giant, Teck, decided to keep its Kumba Iron Ore business, which BHP wanted to get rid of. 

In other positive signs, South Africa still draws international investment from global brands. 

This is particularly true for those in the leisure and travel space, with Club Med’s KZN resort launching next year, while luxury brand, OKU Hotels, bought the iconic Ritz Hotel in Cape Town.

Tata Motors will also return to South Africa to sell new passenger vehicles. 

Mining group, West Wits Mining, is also opening South Africa’s first new underground gold mine in 15 years.

Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/business/839201/another-international-giant-calls-it-quits-in-south-africa/