AngloGold to comply with DMR directive on empowerment share deal

Sipho Pityana, chairman, AngloGold Ashanti

ANGLOGOLD Ashanti is to amend mining rights following two empowerment transactions that may have contravened black economic empowerment rules, said Bloomberg News.

The alleged contravention related to the award of a 4.5% stake to employees with the other 1.5% being sold to an entity owned by Sipho Pityana, AngloGold’s chairman. The matter was first reported by City Press, a weekly newspaper.

Chris Nthite, an AngloGold spokesman, told Bloomberg News the company was complying with an order from the Department of Mineral Resources.

“We have submitted an application for consent to amend those clauses accordingly,” said Nthite. “We were also requested to provide certain information and we have provided the requested information. We have fully complied with the directive,” he told the newswire.

Failure to comply with the directive could have placed South Africa-based AngloGold’s mining licences in the country at risk of cancellation, City Press said.