Terence Goodlace
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – South Africa’s second-largest platinum mining company is selling shares in the company’s primary operational subsidiary to employees in a R1.1-billion deal.
The JSE-listed Impala Platinum (Implats) said on Thursday that it had concluded a vendor-financed equity transaction with Impala Platinum Limited, which owns the platinum mining and processing operations in the Impala lease area near Rustenburg and the platinum refining operations in Springs on the East Rand.
“It’s a meaningful way of aligning employees’ interests with the future profitability of Impala,” Implats CEO Terence Goodlace said in a media release.
The newly formed Impala Employee Share Ownership Trust has subscribed for 4% of Impala through a R1.1-billion interest-free company loan that has no final repayment date.
The deal will increase the ownership of historically disadvantaged South Africans to well above the statutory 26% level.
The transactional consultation processes, which have begun, will continue early in 2015 in the forums agreed after the conclusion of the July 23 wage settlement between Impala and the Association of Mineworkers and Construction Union.
Trust beneficiaries will be all Patterson grade A to C level permanent employees of Impala at the Impala Rustenburg North and South mining operations, mineral processing and services and the refinery.
The participating entities will each have union representation through workers’ committees appointed by the union members.
The trust will have 17 appointed trustees, including three office bearers from each workers’ committee, two independent trustees and three Impala-appointed trustees.
Sixty-five per cent of the dividends paid from Impala’s future profits will be distributed to all qualifying beneficiaries and 35% will go towards repaying the Implats loan.
Once the the loan is paid in full, qualifying employees will receive 100% of the dividends for the life of the mine and its associated processing and refining operations, with Impala covering the cost of operating the trust.