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Bafokeng passed on Anglo offer Posted: Fri, 24 Nov 2006 [miningmx.com] -- ROYAL Bafokeng Holdings (RBH), one of two empowerment entities approached for a deal with Anglo American and Kumba Resources, has no regrets about passing up the opportunity, said RBH CEO Niall Carroll. RBH is the investment arm of the Royal Bafokeng Nation, which has a very close relationship with the country’s two largest platinum producers because of its ownership of land under which are some of the world’s richest platinum deposits. RBH and Eyesizwe Coal were the two empowerment groups approached by Anglo American to participate in an empowerment transaction with its subsidiary Kumba Resources that would see the iron ore assets split out of Kumba. A new empowerment company would be formed with the remaining coal, base metal and mineral sands assets. “It was all the stuff Anglo wanted to get rid of,” Carroll told Miningmx in an interview. “That the marginal assets are now in the money is more a function of the commodity prices than the quality of the assets,” he said. “We try not to regret too many things.” Anglo executive director Philip Baum said confidentiality agreements prevent him from disclosing who the empowerment groups were that Anglo spoke to. The Kumba unbundling and empowerment transaction was unveiled in October 2005. On 20 November, Kumba Iron Ore, with Anglo as the 65% shareholder, listed on the JSE. Exxaro Resources, which houses Kumba Resources non-iron ore assets, lists under its own name on 27 November. It is likely to buy Anglo’s Namakwa Sands mineral sands and a 26% stake in Anglo’s Black Mountain zinc assets for about R2.2bn excluding capital expenditure. These, combined with Kumba Resources’ own zinc assets, are not assets that appealed to RBH. “For us in RBH, we wanted exposure to the iron ore and we felt we weren’t getting that. It was just not for us (this transaction),” Carroll said. RBH wants to diversify its holding away from platinum and out of mining. “We want to find ways to aggressively diversify away from platinum and mining in general. We need to do bigger deals and we need to get our minds around how to do that outside mining.”Free news alerts: click here to subscribe
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