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In 2011, Anglo American Platinum Limited (Anglo American Platinum) concluded a multibillion rand broad-based economic empowerment ownership transaction – namely, Alchemy.

Alchemy was designed to promote long-term sustainable development in Anglo American Platinum mine host communities and key labour-sending areas (LSAs), not currently benefiting from the Company’s extensive black economic empowerment (BEE) programmes.

The beneficiary communities include qualifying communities around Tumela / Dishaba, Rustenburg, Mogalakwena and Twickenham operations, and in labour sending areas (LSA’s) such as Lesotho, Mozambique and Eastern Cape.

Alchemy overview

Through various sustainable community development programmes, Anglo American Platinum endeavours to leave a lasting legacy for host communities. The company thus significantly promotes opportunities for sustainable development with lasting solutions, ensuring the upliftment of communities so they are not solely dependent on future mining.

In 2011, Anglo American Platinum launched Alchemy, a R3.5bn community development and empowerment transaction to provide equity ownership to mine host communities around four operations (Mogalakwena Mine, Rustenburg operations, Twickenham Mine and Amandelbult Complex) and Labour Sending Areas (LSAs).  Anglo American Platinum issued 6,290,365 shares to the Lefa La Rona Trust, which constituted approximately 2.4% of AAP’s issued share capital. Lefa La Rona acts as a conduit the four other Development Trusts in each of the four benefit areas and to the Non-Profit Company (NPC) in the LSAs.

The transaction was facilitated through a notional vendor funding (NVF) mechanism, to support the development of beneficiary communities into self-sustainable entities for a life far beyond the life of mines, enjoying meaningful economic benefits from the onset.

On 15 December 2021, the Alchemy scheme marked its 10th anniversary and conclusion of the notional vendor financing period. This financing was settled early (July 2020) when we repurchased 4,889,680 shares at par value, leaving the balance of 1,400,685 shares as unencumbered.

These shares are held by the umbrella trust, Lefa La Rona, and subject to certain restrictions. From 15 December 2021, 40% can be distributed to the community beneficiary trusts and non-profit company based on their participation interest while the balance (60%) will be held by Lefa La Rona until 2041. Dividend accruing from this 60% will continue to flow to the community beneficiary trusts and non-profit company, propelling them to fulfil their mandate of promoting a sustainable future, beyond mining, through mining.

For Trust Related matters, contact:

Shibu Mapheto
Tel: 011 373 6303
Email: [email protected]