The Competition Tribunal has approved a large merger whereby diversified miner African Rainbow Minerals’ (ARM’s) special purpose vehicle ARM (SPV) Bokoni Mining Consortium intends to acquire the entire share capital of Bokoni Platinum Mines, giving it sole control over Bokoni Platinum.

The ARM (SPV) Bokoni was established specifically for the purposes of this merger and therefore does not have any other business activities.

The tribunal announced its approval of the merger on August 25, stating that it was subject to public-interest-related conditions involving broad-based black economic empowerment and employment.
 
The Bokoni platinum mine was placed under care and maintenance in 2017 owing to several years of significant cash losses under difficult market conditions, resulting in retrenchments.

Pending the outcome of a feasibility study to be conducted by ARM (SPV) Bokoni, the merger is expected to result in the reoperating of Bokoni mine and the creation of about 5 000 employment opportunities, of which about 2 500 will be permanent.

In addition, structures promoting the greater spread of ownership will be established.

CONDITIONS

Within 36 months of the merger occurring, an employee share ownership programme special purpose vehicle (SPV) must be finalised, along with a local community SPV and a black industrialists SPV.
 
The aim of these SPVs will be to benefit qualifying employees, eligible host communities of the mine and black industrialists. Among others, these structures will each acquire a shareholding of 5% in the company for a nominal price.

For two years after the merger takes place, the company will have to give first preference to Bokoni mine’s current fixed-term contract care-and-maintenance employees for any vacancies, provided they are suitably qualified and have the necessary skills, know-how and experience for those jobs.

Moreover, reasonable steps must be taken to maintain a database of the names and contact details of these employees and, should any vacancies arise in the first two years of the merged entity’s existence, these should be communicated to them.