At the end of 2011, Anglo American Platinum placed subscription shares into its Inheritance Trust, the Lefa La Rona Trust for Alchemy, to the value of R3.5 billion.
The Lefa La Rona Trust acts as a direct conduit and bank to four other Development Trusts in each of the four benefit areas and to the Zenzele Itereleng Non-Profit Company (NPC) in the LSAs.
Anglo American Platinum transferred the first dividends to Lefa La Rona in early 2012, with annual dividends to be distributed to each of the Development Trust and the Zenzele Itereleng NPC in the same proportion as their equity participation interest in the Lefa La Rona Trust.
Equity portions for each Development Trust have been determined based on the usage of reserves and resources at each mine over the next 30 years. For the LSAs, a fixed amount will be determined.
Anglo American Platinum guarantees a minimum annual cash flow of R20 million to be paid to the Lefa La Rona Trust, with an additional CSI commitment of R30 million annually.
The Lefa La Rona Trust distributes funds in proportionate to each of the four Development Trusts for the beneficiary communities’ development.