Bloomberg Report: quote.bloomberg.com
Stuff from SH - sheds more light: stockhouse.com;
Key paragraph: "In a separate announcement South Africa's Department of Minerals and Energy said it had awarded platinum-mining rights in the northeast of the country to a joint venture between Canada's SouthernEra Resources Ltd., a diamond and platinum miner, and Mvelaphanda Resources Ltd., South Africa's second-biggest black- owned mining company. SouthernEra, which is already digging a platinum mine in South Africa, has said it wants to grow its platinum arm into a 500,000 ounce per year producer.
The rights were awarded on a concession given up by Anglo Platinum. A group of black investors were awarded mining rights on a second concession ceded by Anglo Platinum nearby. The department said 96 applications were received for the mining rights, in a statement distributed by e-mail. "
Articles copied below:
Anglo Platinum Completes Agreement Over Licenses (Update4)
By Dylan Griffiths, Antony Sguazzin and Jonanthan Rosenthal
Johannesburg, Aug. 7 (Bloomberg) -- Anglo American Platinum Corp. said the South Africa's mines ministry has agreed to process six licenses that will allow the world's biggest platinum producer to complete a 20 billion rand ($1.9 billion) expansion.
As part of its agreement with the government, Anglo Platinum will enter two joint-ventures with black investors at expansions at its Twickenham and Der Brochen projects, the company said in a statement to the stock exchange in Johannesburg.
The ministry had previously said that Anglo Platinum would have to apply for the licenses along with other miners, while Anglo Platinum said this breached an agreement made last year. Anglo Platinum had taken the ministry to court.
``It's an absolute win-win outcome,'' said Anglo Platinum's Chairman, Barry Davison, at a press briefing in Cape Town. ``The deal will achieve the security of tenure that we are looking for and will enable us to raise our output from 2 million to 3 1/2 million ounces.''
Anglo Platinum shares gained 7 rand, or 2.2 percent, to 323 rand in Johannesburg.
In a separate announcement South Africa's Department of Minerals and Energy said it had awarded platinum-mining rights in the northeast of the country to a joint venture between Canada's SouthernEra Resources Ltd., a diamond and platinum miner, and Mvelaphanda Resources Ltd., South Africa's second-biggest black- owned mining company.
SouthernEra, which is already digging a platinum mine in South Africa, has said it wants to grow its platinum arm into a 500,000 ounce per year producer.
The rights were awarded on a concession given up by Anglo Platinum. A group of black investors were awarded mining rights on a second concession ceded by Anglo Platinum nearby. The department said 96 applications were received for the mining rights, in a statement distributed by e-mail.
A draft government policy leaked last week called for new mines to be controlled by black investors, for companies to give up stakes in existing operations and for state bodies to take over stakes for later distribution if suitable black shareholders couldn't be found.
The South African government is trying to increase black participation in Africa's biggest economy to make up for the 350 years of white rule, which ended in 1994.
Since the proposal was leaked to the media, South Africa's mines ministry has said that it was just a starting point for negotiations between government and mining companies.
``It enables us to have confidence in the future,'' said South Africa's mines minister, Phumzile Mlambo-Ngcuka, at the press conference in Cape Town.
Govt finds minerals compromise
By: Stewart Bailey & David McKay
Posted: 2002/08/07 Wed 18:00 ZE2 | © Miningweb 1997-2002
JOHANNESBURG ? The South African government and Anglo Platinum have today set out a mineral exploitation pact tipped by industry as a blue-print of how black economic empowerment (BEE) can be successfully applied in South Africa's mining sector. The agreement sees Anglo Platinum [JSE:AMS], the world's largest platinum producer, agree to cooperate with black business on properties contiguous with land on which it has been granted mining licenses.
It comes less than a fortnight after Miningweb published details of a government charter aimed at finalising black ownership in South African mining, but which was interpreted by local and international business as draconian and unrealistic.
Commenting on today's (7 August) pact with Anglo Platinum, Sandile Nogxina, director-general of South Africa's minerals and energy department, said it was a precursor to wide-ranging talks scheduled to be held with Barry Davison, Anglo Platinum's chief executive, and Gwede Mantashe, secretary-general of The National Union of Mineworkers, on the empowerment charter at large.
Nogxina pledged to find a solution: "I can assure you we will come up with something that every South African and foreign investor will be proud of," he said of talks on the charter. Davison said that the agreement was not prejudiced by the leaking of the BEE charter on mining; in fact, it could be carried forward into the wider talks with government.
The agreement
In terms of the agreement, Anglo Platinum has been granted the right by government to mine six properties including the strategically important Der Brochen and Twickenham, ventures thought to require capital expenditure of $2 billion (R20 billion) on estimates they will yield 400,000 ounces of platinum a year. In return, Anglo Platinum has agreed to cooperate with two black-owned mining businesses, nominated by government, on these two properties.
These cooperations, to be structured as 50:50 joint ventures, will be outside Anglo Platinum's original mining plan for the areas and will be managed as stand-alone enterprises. The black businesses will also be required to introduce their own platinum-bearing properties to the joint ventures. Crucially, Anglo Platinum will retain 100 per cent control of its original expansion projects within the two lease areas.
Government has also stipulated that further BEE agreements on existing Anglo Platinum operations at Union Section, Amandelbult, Lebowa and Rustenburg, are still subject to the minerals bill, due to be promulgated later this year, and the charter on BEE in mining.
"In terms of the agreement, two 50:50 joint ventures with black economic empowerment groupings will be established, one each on Twickenham and Der Brochen, on portions of the project areas identified as being able to support an independently managed stand-alone operation," government said. "Participation by the BEE groupings will be facilitated by their contribution of certain farms to the joint ventures. Anglo Platinum will independently own (100%) and develop the remainder of the Twickenham and Der Brochen project areas," it added.
Nogxina described the agreement as typical of the way future BEE in mining could be conducted. "The norms of the market must prevail. This will not be a smash and grab exercise to give assets to black people," he said. Nogxina added that black mining businesses cooperating with Anglo Platinum would have to do so independently and on economic terms suitable to both parties.
Foreign partners
There will be five black empowerment partners on properties excluded from the Der Brochen and Twickenham lease areas. Many of these will have foreign partners, Nogxina said. Details of the black businesses in the running to cooperate with Anglo Platinum will be unveiled next week including the names of their respective partners, some of which are international mining groups.
Analysts were supportive of the announcement. Charles Kernot, mining analysts at BNP Paribus, said: "From the shock of a couple of weeks ago, these announcements and intentions must be seen as good news by international investors concerned about the longevity of investments in South Africa. However, people will remain wary about these negotiations as they proceed and will want to see the intentions outlined, put together in a final charter and written into law," he said.
Since it emerged that South African industry and government had decided to sit down and discuss the terms of a future charter, share prices have improved. The top 20 resource index gained 3.3 percent to 18,575 points with Anglo Platinum gaining 2.2 percent to R323.00 a share while Anglo American, which owns more than 60 percent of the platinum subsidiary, gaining 3.8 percent to R128.00 a share. The gold index was 2.3 percent higher on a stronger gold price. |
