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Alchemy ownership structure

Alchemy shareholding provide a source of funds for community-led structures, and trust governance ensures that funds flow directly to community development. A safety-net provision will ensure a minimum flow of funds where dividends are not declared, and Corporate Social Investment and health and safety linked incentives provide further funding sources

LLRT distributes funds proportionally to each of the development trusts and NPC for the beneficiary communities based on their participation interest (which was determined in accordance with the anticipated resources and reserves usage of each mine over a 30-year period as estimated on 31 December 2010). For the LSAs, a fixed amount was determined.

Structure of alchemy

The Development Trusts that will drive community development in each of the benefit areas are:

Structure of alchemy

  • Alchemy is structured around a linking Trust – Lefa la Rona, four local Development Trusts and a Non-Profit Company serving selected labour sending areas
  •  Development structures include the Dikuno Tsa Sechaba Trust (Amandelbult Mine), Ditholwana Ts'a Rena Community Development Trust (Mogalakwena Mine), Rustenburg Community Development Trust (Rustenburg Operations), Bohwa Bja Rena Development Trust (Twickenham Mine) and Zenzele Itereleng NPC (Eastern Cape, Mozambique, Lesotho and Greater Taung).
  • The Alchemy Trusts are designed to mature through a series of phases. Each Trust moves through three phases, Foundation, Consolidation and the Operational Phase (ref to link below).

Click here to download the information about the Incremental establishment of Trusts

These phases are marked by a transitioning board structure and development tasks. During the Foundation Phase, each Trust is led Founder and Independent Trustees. The Foundation Phase is marked by tasks that solidify processes and procedure around governance, administration, foundation projects, stakeholder engagement and strategic planning. During the Consolidation Phase the Trusts’ operational processes should be formalised to enable full implementation mode and community trustees are introduced, which flows into the Operational Phase.  The Trusts’ full autonomy is reached after 31 years. At this point, all shares will be unencumbered and there will be no Founder participation at board level.

Currently, Lefa la Rona, Dikuno Tsa Sechaba, Rustenburg have community trustees represented on their boards.

Alchemy principles

Alchemy started out with no blueprint plan, but has been established with a clear and binding set of principles, still acting as guiding lights toward its implementation and development: These principles are:

  • A sustainable and empowered structure for delivering on an integrated benefits model in the identified benefit areas
  • Real benefits to communities, not to individuals
  • Transparency and inclusive stakeholder engagement through meaningful engagement and education
  • Enabling local communities through appropriate representative structures to undertake initiatives that will benefit them in the long term
  • Moving from micro to macro integrated benefit and project planning
  • Sustainability of the mine host communities beyond the life of the mine

Alchemy benefits

Alchemy seeks to unlock resources flowing from Anglo American Platinum to promote and sustain long-term community development. It’s estimated that Alchemy will reach approximately one million beneficiaries within the identified mine host communities and LSAs.

Through the Alchemy structures, funds flow directly to community development managed through community elected Boards of Trustees so community members can undertake initiatives and projects of their own to help confront challenges and create a sustainable future.

Benefit areas

Based on the integrated benefits framework and the emphasis on integrated planning, Alchemy will facilitate benefits at several levels:

  • Areas that benefit primarily from Alchemy, are those in a 15km radius from Anglo American Platinum mines (host and neighbouring communities, and resettled villages)
  • Integrated benefits (including CSI and SLP initiatives), and broader integrated planning will be deployed within 50km of mining operations
  • A needs analysis guides development in the short term, focusing on areas where development is most needed

Funding benefits

During the NVF period, funds were made available to the Development Trusts and the NPC in the following manner:

  • Dividends from community shares (net of the dividends waived by the Lefa La Rona Trust in terms of the notional vendor funding commitments in relation to the subscription for the community shares)
  • Annual safety net payment (if required should dividend payments, net of the waived dividends, fall below R20 million)
  • Incentive payments against mine-based Key Performance Indicators (KPIs) (except the LSA NPC, which is not eligible).
  • CSI funds for identified projects in the mine host communities and LSAs (collectively, the benefit areas).

Post NVF, the Trusts receive dividends from 1,400,685 unencumbered shares and the discretionary Incentive payments against mine-based Key Performance Indicators (KPIs) (except the LSA NPC, which is not eligible).

For Trust Related matters, contact:
Shibu Mapheto
011 373 6303
[email protected]