[miningmx.com] — BHP Billiton Energy Coal SA (Becsa), a subsidiary of global resources giant BHP Billiton, has entered into an empowerment transaction with a black-owned consortium led by the Pembani Group.
The consortium, which will effectively hold an 8% equity interest in Becsa, also includes a broad-based empowerment grouping, the company said on Tuesday.
Pembani, formerly Worldwide African Investment Holdings and founded in 1994, is a diversified energy investment company with interests in the mining and petroleum industry. It is chaired by Phuthuma Nhleko, the former Group CEO of MTN.
The shareholders of Becsa have also approved the implementation of an employee share ownership plan (Esop) in which participating employees will hold a beneficial interest of 2% equity in Becsa, further enhancing Becsa’s BEE credentials.
LONGER LIFE FOR KUYASA
The company also confirmed that it has agreed to sell additional resources to Kuyasa Mining in order to facilitate a longer mine life of its operation near the town of Delmas.
The divestment of Delmas Colliery more than ten years ago to create Kuyasa Mining was Becsa’s first black economic empowerment transaction. This latest deal will extend the life of Kuyasa and create more value for the business and its employees.
In addition to Kuyasa Mining, Becsa has facilitated the establishment and growth of several empowerment companies including Eyesizwe Coal, which became Exxaro, and Optimum Coal Holdings.
Through its previous direct sales of assets and the new empowerment transactions, Becsa said it was now in a position of more than meeting the transformation requirements of the Mineral and Petroleum Resources Development Act and Mining Charter and subsequently has received conversion of all its old order mining rights.
