9 November 2011
Anglo American Platinum (Amplats) has announced a R3.5-billion empowerment deal that will see Lefa La Rona – a development trust for both mine host and labour-sending communities – acquiring a 2.33% stake in the company.
The transaction is designed to provide cash-flow benefits to the beneficiaries from the outset and potential equity ownership in Amplats at the end of the 10-year notional vendor finance period.
“The need for ongoing community development and sustainable economic transformation is recognised as a commercial and social imperative,” the company said in a statement this week.
“Amplats has been exploring innovative ways of enhancing and optimising the benefits that accrue to Mine host communities at the Mogalakwena Mine, Dishaba/Tumela Mine, Twickenham Mine and the Rustenburg Mines and extending such benefits to include key labour sending areas to the mines.”
As such, it had identified the need to consider broader community benefit schemes for affected communities surrounding the mines that had not previously participated in Amplats’ empowerment ownership transactions.
Amplats believes the deal will improve and entrench its relationship with mine host communities, while also developing self-sustaining mine host communities that are not solely dependent on the mines.
Broad-based, sustainable empowerment
During the 10-year period, 40% of the dividend declared by Amplats will be paid out to Lefa La Rona Trust, while the remaining 60% will be used to settle the notional vendor finance.
In addition, the transaction provides a guaranteed R20-million to the trust to finance development projects, should the aggregate dividend payable be less than R20-million per year.
In addition, the trust will receive other cash-flow benefits in the form of annual social investment incentives of up to R30-million per annum, over and above the guaranteed amount, for social development projects put forward by the trust and approved by Amplats, for the duration of the notional vendor finance period.
“The transaction underscores Amplats’ commitment to empowerment and community development,” the company said. “Amplats believes that the transaction and the related development dialogue with the mine host communities will mark a significant step towards true broad-based and sustainable empowerment and the ongoing development of the beneficiaries.”
SAinfo reporter
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