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Our deal would diversify industry - Norman Mbazima, acting joint CEO, Anglo Pt
In an interview on ClassicFM @ 18:00 on Tuesday, 4 September 2007
[miningmx.com] -- ANGLO Platinum, the 76% held subsidiary of UK-listed Anglo American, said its black economic empowerment transactions unveiled today would help diversify South Africa's platinum group metals (PGM) industry.
"South Africa’s PGM industry is much consolidated. There are only three major producers and the deals completed today would help diversify the industry," said Anglo Platinum joint acting CEO, Norman Mbazima. “The deals would be very helpful for the industry in general."
Anglo Platinum announced that 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 including the sale of 51% of its Lebowa mine to Anooraq Resources, the sale of a 50% stake in Booysendal, and its 22.4% stake in Northam Platinum to Mvelaphanda Resources, and plans
to distribute up to 1.5% of its issued share capital, worth R3.3bn at current market values, to employees in an ESOP.
Speaking on Classic Business, a week-nightly radio broadcast, Mbazima said the deals had gained tremendous support from South Africa's mineworkers unions.
"We have been meeting with unions and the reaction we've received has been very positive," he said.
Commenting on the deal, Anooraq Resources CEO, Tumelo Motsisi, said Anooraq had been in negotiations with Anglo Platinum for over two years.
"We started engaging in talks with Anglo after we completed the acquisition of Ga-Phasha. We wanted assets that would enable us the access to cash flow as well as skills," said Motsisi.
The Lebowa mine was next door to Ga-Phasha and Anooraq intended maximizing synergies. "Lebowa is an old mine and has all the infrastructure already built as well as skills and we will be taking advantage of that, he said.
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