Anglo Platinum Announces South Africa BEE Transactions

Anglo Platinum, Anooraq Resources and Mvela Resources on Tuesday announced that they have agreed to create "two substantial, Historically Disadvantaged South African-managed and controlled" platinum group metal producers.

Anglo Platinum will sell an effective 51 percent of Lebowa Platinum and an effective 1 percent of the Ga-Phasha Project for R3.6 billion ($495.62 million) to Anooraq. As a result Anooraq, owner of 50 percent of Ga-Phasha, will own 51 percent of Lebowa and Ga-Phasha through a newly created firm, Lebowa Holdco.

Mvela Resources will purchase Anglo Platinum's 50 percent interest in the Booysendal Project and 22.4 percent direct interest in Northam for a total consideration of R4 billion ($550.69 million).

Anglo Platinum and Anooraq have also agreed to transfer at a future date their respective 50 percent interests in the Boikgantsho and Kwanda JV Projects into Lebowa Holdco, giving Lebowa Holdco full ownership of these assets.

As a result of these transactions Anooraq and Mvela Resources will respectively control the 3rd and 5th largest PGM resource bases in South Africa, resulting in a fundamental and sustainable transformation of the country's platinum industry.

Anglo Platinum also announced an employee share ownership plan (ESOP) that will benefit more than 43,000 employees. The new scheme covers all employees who do not participate in any Anglo Platinum share scheme and will comprise up to 1.5 percent of Anglo Platinum's issued share capital.

“This is a truly historic BEE transaction which will fundamentally transform the South African platinum mining industry through the creation of two major independent HDSA-managed and controlled PGM producers," Anglo American CEO, Cynthia Carroll commented.