UPDATE 3-S.Africa's Amplats sells Rustenburg mines to Sibanye for $331 mln

* Sibanye makes first move into platinum market

* Jobs at sold mines said to be safe for now

* Amplats, Sibanye shares rise (Adds quotes, analysts)

By Zandi Shabalala

JOHANNESBURG, Sept 9 (Reuters) - Anglo American Platinum(Amplats) sold the labour-intensive South AfricanRustenburg mine that produces about a third of its annual outputfor 4.5 billion rand ($331 million) to bullion producer SibanyeGold.

Amplats, a unit of global mining group Anglo American, is pivoting its strategy on newer and more mechanisedmines and removing unprofitable ounces following a recordfive-month strike last year.

Amplats has been weighing either a sale or a flotation of Rustenburg, the world's top platinum mine with an annualproduction of over 800,000 ounces.

Initial market reaction was positive. Shares in Amplats, jumped 3.8 percent while Sibanye's stock rose 5.5 percent.

"With so much uncertainty over PGM (platinum group metal) prices in the near and medium term, the structure of the dealdelivering greater value longer term seems the only and mostsensible course of action," Investec Securities said in a note.

Others analysts were less sanguine.

"We think Sibanye is buying a troubled asset," Johann Steynfrom Citi said in a note to investors.

Platinum producers have been suffering from persistentweakness in prices, which slid below $1,000 an ounce inJuly for the first time since early 2009. With prices at thoselevels, by some estimates, nearly two thirds of the industrycould be loss-making.

Rustenburg employs about 16,000 workers in three shafts andsupporting infrastructure, which include concentrating plantsand a chrome recovery plant.

Even after the sale, Amplats retains its spot as the world'stop producer of the metal followed by Impala Platinum.

Amplats retains eight mines some of which are mechanised,including Mogalakwena which will now be its crown jewel and mostproductive mine. Magalakwena, unaffected by last year's labourstoppage, produced 370,000 ounces in 2014.

PAYMENT PLAN

Sibanye, which operates four mature gold mines, will pay 1.5billion rand upfront in shares or cash and 35 percent ofRustenburg's free cash flows over the next six years with aminimum payment of 3 billion rand.

Amplats Chief Executive Chris Griffith said the firm waslikely to sell its Union platinum mine as it was not largeenough to list separately. One option had been to list Union andRustenburg together.

Sibanye Chief Executive Neal Froneman said Sibanye hopes toturn around the Rustenburg assets as it did with aging mines itinherited from Gold Fields.

Froneman said jobs at Rustenburg were secure for now.

"I think jobs are safe as long as we acknowledge that thecurrent market conditions don't get worse," he said.

Sibanye would spend between 1.2 billion and 1.4 billion peryear over the next few years on the assets while aiming to shave10 percent from costs in the next two years.

The mining minister's advisor Mahlodi Muofhe told Reutersthe approval of the sale would depend on whether the deal meetsmining charter requirements, which include a 26 percent blackempowerment clause.

Sibanye's black economic empowerment partners owns 26percent of Rustenburg assets, the company confirmed in astatement. ($1 = 13.6010 rand) (Additional reporting by Jan Harvey in London; Editing by KeithWeir)

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