Anglo American Platinum to transfer R2bn value to communities

25th August 2020

By: Martin Creamer

Creamer Media Editor

     

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JOHANNESBURG (miningweekly.com) – Platinum group metals mining and marketing company Anglo American Platinum on Tuesday announced shared value worth R2-billion for host and labour-sending communities one year early as a result of recent strong share price performance.

The settlement will result in R2-billion of value transferring to these communities through regional development trusts, which will focus on advancing broad-based community development including infrastructure, education and health developments, as well as improving livelihoods. It is part of the Alchemy community share scheme established nine years ago.

The outcome is that the Lefa Le Rona Trust, which is the umbrella trust on behalf of the regional development trusts, now holds unencumbered shares in Anglo American Platinum with a value of R2-billion at vesting.

The settlement and transfer of value to communities comes one year prior to the maturity of the Alchemy scheme period from December 2011 to December 2021, owing to Anglo American Platinum’s recent strong share price performance. 

Anglo American Platinum CEO Natascha Viljoen expressed delight that the company’ community share scheme had delivered on its objective of creating sustainable shared value.

Host communities and specific communities are from where Amplats employees originate in the Eastern Cape, North West and Southern African Development Community countries.

The regional development trusts, Viljoen said in a release to Mining Weekly, would focus on advancing broad-based community development.

“Anglo American Platinum is playing a responsible role by catalysing development in our communities,” Viljoen stated.

Through its established governance structures, the company said it would work to ensure the careful deployment of this capital so that it would further advance efforts to deliver shared value and build thriving communities.

At the time of the inception of Alchemy, Anglo American Platinum issued 6.3-million shares at par value of 10 c a share, which are held by the Lefa Le Rona Trust, representing 2.33% of the total issued share capital. Dividends received by the Lefa Le Rona Trust amount to R300-million to date and have been deployed to further the development objectives.

The development trusts are managed by transparently selected community trustees, independent trustees and company selected trustees. They have been designed in consultation with locally-based working groups, and structures and governance are carefully customised to serve local community dynamics and development requirements.

Edited by Creamer Media Reporter

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