Anglo Platinum and the Department of Minerals and Energy ("the Department") have been engaged in discussions since October 2000 to restructure Anglo Platinum’s mineral rights portfolio to enable it to expand its production in response to Platinum market demand expectations. In December 2000 agreement was reached whereby Anglo Platinum released a number of farms on the Eastern Limb of the Bushveld Complex to the Department. Since that time and in anticipation of the new Minerals Bill, Anglo Platinum and the Department have been in discussions intended to meet both the Department’s objectives in respect of Black Economic Empowerment and Anglo Platinum’s objectives of security of tenure of its current operations and the development of expansion projects.
The objectives of both parties have now been met. Agreement has been reached in terms of which six of Anglo Platinum’s applications for mining authorisations will be processed by the Department – four for existing operations and two in respect of expansion on the Twickenham and Der Brochen project areas.
In terms of the agreement two Black Economic Empowerment groupings will acquire 50% ownership of discrete portions on each of the Twickenham and Der Brochen project areas identified as being able to support an independently managed stand alone operation. Participation by the BEE groupings will be facilitated by the contribution of certain farms to the joint ventures. Anglo Platinum will independently own (100%) and develop other portions of the Twickenham and Der Brochen project areas.
The requirements for BEE in respect of existing operations will remain governed by the new bill and associated mining charter when finalised.
Anglo Platinum is therefore pleased to confirm that implementation of this agreement will enable the announced expansion programmes, at a cost of approximately R20 billion and creating 13 000 new jobs, to proceed as soon as mining authorisations in terms of the agreement have been issued by the Department.
Anglo Platinum has to date successfully negotiated significant Black Economic Empowerment initiatives with Mvelaphanda Platinum and African Rainbow Minerals and is looking forward to developing further Black Economic Empowerment partnerships in terms of this agreement.
For further information, please contact
Mike Mtakati
(011) 373-6865
083 455 7887