8 February 2011
Mining giant Anglo Platinum has unveiled a multi-billion rand black economic empowerment deal that will benefit communities near where the company mines, as well as communities from where it sources its labour.
The beneficiary communities will include qualifying communities around the Twickenham, Mogalakwena, Rustenburg and the Amandelbult operations.
Long-term equity ownership
The aim of the deal is to provide the beneficiary communities with long-term equity ownership in Anglo Platinum Limited and to give the beneficiary communities the ability to obtain meaningful cashflow benefits over the life of the transaction.
“Our host communities have long benefited from the presence of our mines in their areas,” Cynthia Carroll, who is the Anglo Platinum chairperson as well as CEO of parent company Anglo American, said in a statement this week.
“Our operations have provided jobs, procurement and supply chain opportunities, infrastructure development, enterprise development, support of the education and health sectors and many other community development initiatives over many years,” Carroll said.
“We are very excited about the potential of this unique transaction as it is a true reflection of our commitment to partnership and our willingness to extend the benefits to key labour sending areas in pursuit of sustainable community development.”
New approach to BEE
According to Anglo Platinum, the initiative heralds a new approach that emphasises broad-based economic empowerment and engagement with the beneficiary communities, as well as taking the company beyond legislative compliance.
It adds that it has been exploring ways of enhancing and optimising the benefits that accrue to host communities and extending such benefits to include key labour sending areas.
“This next phase of empowerment underlines our ongoing commitment to the beneficiary communities and we believe that it will add the much needed impetus to social upliftment and meaningful economic empowerment,” said Anglo Platinum CEO Neville Nicolau. “Its significance comes in that it enables us to partner with the beneficiary communities and begin the process of creating sustainable legacies that will outlast the lives of our mines.
“So far we have been encouraged by exploratory discussions, with certain community leaders that indicate a willingness and desire to address long term development.”
According to Anglo Platinum, the exact terms and final structure of the transaction will be determined following an extensive community engagement process, with the objective of jointly exploring the development aspirations of the beneficiary communities and reaching a collective agreement.
It is envisaged that the company will facilitate the financing of the transaction.
Would you like to use this article in your publication or on your website? See: Using SAinfo material