THARISA, the chrome and platinum group metals miner, said today it was in discussions aimed at buying out minority shareholders in its 74% owned subsidiary Tharisa Minerals.
The move is in line with last year’s High Court ruling which found that the Mining Charter did not have the force of shaping policy. The South African government was not permitted to insist mining firms ought to re-empower themselves when applying for a mining licence renewal.
The transaction will see Thari Resources and the Tharisa Community Trust become shareholders in Tharisa Plc, which is also listed in Johannesburg. Thari Resources owns 20% of Tharisa Minerals while the community trust owns 6%.
Thari was the founder of the business having consolidated 120 farms. These mineral holdings were moved into Tharisa Minerals and Tharisa plc bought 74% of the company as part of its founding.
Tharisa also funded the community trust in a free-carry arrangement which means that it is today unencumbered.
“We believe owning 100% of your assets is the correct structure,” said Ilja Graulich, spokesman for the company. “We believe we can look at flipping up the shareholding of our empowerment partners to Tharisa plc level, while retaining our empowerment status.”
Last year Tharisa reported full year share earnings to end-September of 38.3 US cents, a year-on-year increase of 127% owing to vastly improved PGM prices, rhodium especially. It declared a five US cents a share final dividend taking the total dividend for the year ended September 30 to nine cents per share – a record payout.
The current year looks set to be one of major progress for the group. In addition to the commissioning of its $55m Vulcan plant aimed at boosting chrome production, the company also expects to set out its plans for the $300m platinum group metals project Karo Platinum in Zimbabwe.
