Johannesburg – Lonmin said on Thursday it had brought black ownership in the company to 26 percent following a series of black economic empowerment (BEE) transactions.
“This is a milestone that has been a long time in the making and the celebration today effectively heralds the start of a new partnership between Lonmin and its host communities,” the platinum miner’s chief executive Ben Magara said in a statement.
The transactions made up the last remaining eight percent of Lonmin’s BEE scheme.
The transactions were the creation of the Bapo Community Trust, which would hold 0.9 percent equity stake in Lonplats, the company which houses Western Platinum Limited and Eastern Platinum Limited.
A second transaction was the establishment of an employee share ownership scheme called Siyakhula. This profit-sharing scheme would enable eligible employees to benefit directly from profits generated by Lonmin’s two operating subsidiaries.
Every year 3.8 percent of the profits of Western and Eastern Platinum Limited would be set aside for distribution to eligible employees.
The third BEE transaction was the establishment of the Lonplats Marikana Community Development Trust.
This trust would acquire 0.9 percent of the ordinary shares in Lonplats for the benefit of communities in the western part of Lonmin’s Marikana operations.
“I can summarise the intent of these transactions in one sentence: to form partnerships that will enable us to build this community for ourselves and to contribute to a better life for all,” Magara said.
“All of these partnerships will lead to stronger bonds and a better understanding between all stakeholders, as we now all have a vested interest in the success of our company.” – Sapa