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Anglo Pt pencils in spring BEE deadline Posted: Wed, 09 May 2007 [miningmx.com] -- ANGLO Platinum has pencilled in September as completion date for its empowerment transactions. “We’re hoping for around then,” a company source said. The outcome is likely to be the creation of two separately listed empowerment vehicles: one is Northam Platinum, involving multiple parties but hitched to a key empowerment player. It’s fairly obvious that Mvelaphanda Resources, of which Lazarus Zim is chairman, will be the largest shareholder in the Northam deal, while Toronto-listed Anooraq Resources looks like it will be the other. Mvela Resources spokesman James Wellsted confirmed there’s real momentum to Anglo Platinum's empowerment plans. Said Wellsted: “Things are powering ahead. It’s known we’ll be key in the Northam deal but we currently have minority shareholders [in Northam] to think about.” Sandile Nogxina, director-general at the Minerals & Energy Department, echoed the sentiment: “We’re beginning to talk now,” Nogxina said. According to market sources, the framework for both deals is in place. The deals will be at asset level and both will involve Anglo Platinum’s so-called hybrid methodology. That’s a system by which it “sells” cash flow and future ounces in the ground. The South African government has rejected that methodology in the past, as current cash flow is better than future promises of cash flow. There’s also the affordability aspect. If empowerment firms are to buy mining assets, they’ll need cash flow immediately to repay their debt, it has argued. But there’s been a thawing in the relationship between the South African government and Anglo Platinum. It’s even tempting to think Anglo American’s decision earlier this month not to file expropriation claims under the Prescription Act was an arranged quid pro quo for government acquiescence concerning the hybrid empowerment scheme. Said Nogxina: “I hope we’ve now stopped talking through the courts and we can start talking directly to each other.” He hasn’t seen sight of Anglo Platinum’s planned transactions. But Nogxina confirmed a workshop, in which empowerment transactions are vetted, is scheduled before July lending credence to hopes the group will tie-up its outstanding empowerment sooner rather than later. Another factor in easing Anglo’s relationship with the South African government has been the manner in which its executives have now – rather suddenly – grasped the nettle. Anglo Platinum CEO, Ralph Havenstein, and Anglo American CEO, Cynthia Carroll, have been liaising directly with Minerals & Energy. As, one suspects, they should. Click Here to subscribe to our daily newsletter
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