Anglo American Launches JV To Promote Black Empowerment

Mining giant Anglo American and Khula Enterprise Finance has launched a 40 million rand ($5.08 million) fund to promote black economic empowerment in South Africa's junior mining sector.

The fund aims to advance the entry of black empowerment companies into mining and related sectors

Khula Enterprise Finance is an initiative of the South African Department of Trade and Industry. The joint venture is between Khula and Anglo's business development and empowerment initiative Zimele.

The South African government has taken a number of steps to help black businesses gain a greater share of the country’s natural resources, including the charter on black economic empowerment, intended to increase black ownership to 26 percent of the mines within a decade.

“Anglo American and Khula seek to optimize existing opportunities to facilitate sustainable growth in the mining sector through partnerships, and to make available our funding, technical expertise and the transfer of skills,” Anglo CEO Tony Trahar told Dow Jones.