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Article

7 Aug 2014

Author:
Allan Seccombe, Business Day (So. Africa)

So. Africa: Lonmin unveils share ownership scheme it says will empower local community

"Lonmin unveils R646m deal with Bapo ba Mogale community" 30 July 2014

Lonmin...unveiled a R546m share transaction with the Bapo ba Mogale community as well as a R100m cash payment to the community as the company strives to meet its black economic empowerment (BEE) targets by the end of the year. Lonmin said the transaction with the Bapo involved the community swapping a royalty scheme for 13.13-million shares in Lonmin, a R20m a year payment over five years, and an employee share ownership scheme and community share ownership trust it is putting in place. The deal would secure it the 26% BEE target by the end of this year...The community also stood to benefit further from Lonmin’s decision to award the Bapo preferential status when it came to the supply of goods and services to the company, which had mines between Rustenburg and Brits in North West province. "Lonmin will provide an opportunity for the Bapo ba Mogale community to participate in the procurement and business value chain activities of Lonplats to a minimum revenue value of R200m within 18 months from completion," Lonmin said.