[miningmx.com] — ANGLO American Platinum (Amplats) said on Monday it would implement a R3.5bn deal that will give 2.33% of the group to communities where it operates.
South African mining houses have to meet government requirements to ensure they are at least 26% black owned by 2014.
They are also under political pressure to do more for communities where they mine against the backdrop of glaring income disparities and calls by radical elements in the ruling African National Congress to nationalise the industry.
“The transaction underscores Amplats’ commitment to empowerment and community development,” the company said in a statement.
Amplats said the estimated costs to it of carrying out the transaction would be R1.161bn, or 0.77% of its market capitalisation in the two trading days that preceded the announcement.
Amplats said if the deal had taken place in January, the financial impact on its headline earnings per share for the six months to the end of June 2011 would have been a negative 36% and would have brought it to 792c from 1,236c.
The deal is structured to bring cash flow benefits from the outset with potential equity ownership in 10 years’ time. Benefits from the 6.3 million Amplats shares will be utilised at the community level on sustainable projects. The shares will be issued to a trust.
Amplats’ share price was down 0.77% at 11:15, compared to a 0.28% decline in the blue-chip Top-40 index .
