This article was printed from Sundaytimes.co.za - home of the Sunday Times, South Africa.]
Cutbacks threaten Angloplat’s BEE
JULIE BAIN
27 February 2005
ANGLO Platinum’s plans to cut back production levels could threaten its black economic empowerment (BEE) programme.
Under the Minerals and Petroleum Resources Development Act passed into law last year, mining companies have to convert their existing mining and prospecting rights to “new order” rights by 2009.
“New order” rights will be granted when the government is satisfied that a mining company has met the requirements of the BEE mining charter.
Companies that do not get conversion of their mining and prospecting rights would have to stop their operations.
Projects that may be affected by the slowing of Angloplat’s expansion plans are GaPhasha (a joint venture with Anooraq) and Booysendal, involving Mvelaphanda Resources.
Both ventures have significant empowerment involvement and may make up part of Angloplat’s submission to the minerals and energy department for conversion.
But whether the department will accept them as empowerment transactions in terms of the conversion process — if they are not going to be developed anytime soon — is unclear.
“We require from them what the law requires. If what is submitted is less than that, then we will ask them to comply with the law,” said Jacinto Rocha, chief director of mine regulation at the department.
“If, for example, in their application for conversion they ... include projects that have been put on hold for the time being, the question has to be asked, can we incorporate this into the assessment?” said Rocha.
Angloplat has until 2009 to secure conversion.
Trevor Raymond, a spokes-man for Angloplat, said:The company has submitted to the department plans demonstrating that it will achieve 15% in five years, and 26% in 10 years.
He said the plan included Eastern Limb projects that were not currently going ahead.
Tumelo Motsisi, deputy chief executive and managing director of Anooraq, said the drilling programme at GaPhasha was continuing.
The company expected to have completed a bankable feasibility study on the project in the next few months, he said.
In 2000 Angloplat announced a major expansion project, planning to lift production to 3.5 million ounces of platinum a year by 2007.
This month it said production for this year would be about 2.7 million ounces.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
