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Anglo Pt unveils R10.9bn BEE deals Posted: Tue, 04 Sep 2007 [miningmx.com] -- ANGLO Platinum, the 76% held subsidiary of UK-listed Anglo American, said it would sell assets and shares worth R10.9bn to black-owned companies and employees in an effort to meet South Africa’s mining legislation. The company unveiled three transactions the first of which is to sell 51% of its Lebowa mine in the northern Bushveld to Canadian and Johannesburg-listed Anooraq Resources, as well as 1% in the Ga-Phasha resource – effectively control – in a deal worth R3.6bn. In the second leg of its empowerment effort, Anglo Platinum will sell a 50% stake in Booysendal, another untapped platinum resource, and its 22.4% stake in Northam Platinum to Johannesburg listed Mvelaphanda Resources. This transaction is estimated to be worth R4bn. Thirdly, Anglo Platinum announced plans to distribute up to 1.5% of its issued share capital, worth R3.3bn at current market values, to employees in an ESOP. “This is a truly historic BEE transaction,” said Anglo American CEO Cynthia Carroll who is thought to have made the fast-tracking of Anglo Platinum’s empowerment strategy top of her list since taking over the group in March. “[It] will fundamentally transform the South African platinum industry through the creation of two major independent HDSA managed and controlled PGM producers,” Carroll said in a statement. If the deal ends more than three years of uncertainty for Anglo Platinum, it is positively momentous for Mvela Resources. Following the sale of the stake in Booysendal by Anglo Platinum to Mvela Resources, which already owns half of the 112 million oz PGM prospect, it will on-sell the entire 100% in Booysendal to Northam Platinum in return for 125 million shares worth R6.25bn. Together with the 22.4% of Northam it has bought from Anglo Platinum, Mvela will then control 63.4% of Northam Platinum. Completion of the deal, however, partly turns on Northam Platinum shareholders agreeing to waive the right of a mandatory offer by Mvela for the rest of Northam's share capital. In Northam Platinum's hands, there is a strategy to quickly develop Booysendal in a proposed R4.5bn project which may begin production in 2010 and help double Northam's output to an estimated 650,000 oz from the current 325,000 oz. "This is a landmark transaction in the platinum sector," said Lazarus Zim, chairman of Mvela Resources and Northam. Click Here to subscribe to our daily newsletter
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