Anglo American helps to create meaningful and

Anglo American helps to create meaningful and
sustainable empowerment in the platinum industry
Anglo American is pleased to unveil a significant
step in the Group’s strategy to deliver effective
broad-based empowerment across its South
African operations as it continues its material
investment in the future of this country.
The Transactions
Anglo Platinum has announced the following transactions
with Anooraq and Mvela Resources.
Anglo Platinum will sell to Anooraq an effective 51% of
Lebowa Platinum Mines Limited and an effective 1% of the
Ga-Phasha Development Project for a total consideration
of R3.6 billion. As Anooraq is the current owner of 50% of
Ga-Phasha, following this transaction, Anooraq will own an
effective 51% of Lebowa and Ga-Phasha. This transaction
will result in Anooraq controlling a PGM producing company
and the 3rd largest PGM resource base in South Africa with
total reserves and resources of 193.5 million 4E (platinum,
palladium, rhodium and gold) oz and a life of mine in excess
of 100 years.
Anglo Platinum will sell to Mvela Resources its 50% effective
interest in the Booysendal Project and 22.4% direct interest
in Northam for a total consideration of R4 billion. Northam will
then acquire 100% of Booysendal from Mvela Resources in
exchange for 125 million new Northam shares. This will result
in Mvela Resources owning a controlling interest of 63.4%
in Northam and a significant enhancement of Northam’s
investment case as a fully integrated, HDSA managed and
controlled PGM producer, extending Northam’s life of mine
from 16 to over 100 years.
Anglo Platinum’s sale of these mining assets has helped
create two sustainable, HDSA managed and controlled
PGM producers, transforming the South African PGM
mining landscape. Through this substantial transfer of PGM
resources into HDSA control, Anooraq and Mvela Resources
will be established as material global participants in the
platinum industry, respectively controlling the 3rd and 5th
largest PGM resource bases in South Africa.
In line with Anglo American and Anglo Platinum’s
transformation objectives, both Anooraq and Mvela
Resources have established broad-based ownership
structures. In these transactions, meaningful shareholdings
and participation by women and community groupings
associated with the operating mines and from labour
sending areas will benefit in excess of 55,000 HDSAs. Mine
employees are expected to benefit from these transactions
through an employee share ownership plan (ESOP) at
Lebowa Holdco and an incentive programme at Northam.
Anglo American and Anglo Platinum are proud of the
significant progress made towards establishing an ESOP
that will benefit South African staff who do not already
participate in any Anglo Platinum share scheme. An
important consideration in the design of the ESOP has
been Anglo Platinum’s motivation to create a long-term,
sustainable empowerment vehicle that will provide benefits
to all employees for an extended period.
The ESOP will include more than 43,000 employees and
will comprise up to 1.5% of Anglo Platinum’s issued share
capital (current value of approximately R3.3 billion) and
represents the largest employee share ownership initiative,
by value, launched in the South African mining sector to
date.
Anglo American as BEE catalyst
Anglo American is proud of its empowerment track record
and its commitment to the transformation of the South
African economy.
In addition to Anglo American’s empowerment transactions
to date, the Group has spent a further R37 billion on HDSA
procurement since 1999. Anglo American is also ensuring
that its employees are an integral part of its transformation
strategy and is implementing ESOPs across the Group.
Anglo American’s support for small
business
Through Anglo Zimele, the Group’s enterprise development
initiative for SMEs, Anglo American’s BEE procurement and
development spend has increased significantly and in 2006
totalled R12.3 billion for the year.
Anglo Zimele and the Anglo Khula Mining Fund have
invested in 17 new and existing empowerment ventures in
an assortment of sectors. These investments collectively
turned over R919 million in 2006.
Anglo American: A leader in
Corporate Social Responsibility
Anglo American has been rated by other corporates and
NGOs as South Africa’s best corporate grant maker for the
seventh successive year in a recent Trilogue survey.
• Anglo American has led R50 billion worth of empowerment transactions to date, excluding these Anglo Platinum
transactions;
Anglo American was voted top in 13 categories, and was
given a further two second places and one third.
• Anglo American has been a catalyst in several of South
Africa’s leading BEE initiatives:
The company recognises skills development as a key
requirement to expand operations in South Africa. Anglo
American currently spends 3% of payroll in this area.
- African Rainbow Minerals
- Anglo Coal / Inyosi
- De Beers / Ponahalo
- Exxaro
Over the past five years, Anglo American has trained over
3,000 artisans and has more than 400 bursars receiving
tertiary training. Anglo American is committed to employing
an additional 200 engineering undergraduates in 2007 and
400 by the end of 2008 in support of the JIPSA initiative.
- Eyesizwe
- Hulamin
- Kumba Iron Ore
- Mondi / Shanduka
- Mvela Resources
- Scaw Metals
- Tongaat Hulett
Anglo American, as the largest private sector investor in
South Africa, is committed to supporting and developing
economic empowerment within the country and considers
transformation a strategic imperative of doing business in
South Africa.
Anglo American committed to
South Africa
Anglo American remains committed to investing in South
Africa.
- R182 billion invested since 1999
- R37 billion planned in capex for South Africa in 2007 and
2008.
South Africa remains a central pillar of the company’s
global operations and future expansions with 42% of Anglo
American’s assets in the country.