SA coal arm sells stake to black investors

2011-12-14 08:35

BHP Billiton’s South African coal unit said yesterday it would sell an 8% stake to a black-owned consortium led by Pembani Group to help meet its required black ownership target.

BHP Billiton Energy Coal South Africa (Becsa) also said it had approved a scheme that would give participating employees a 2% stake, further increasing its black shareholders.

Companies is South Africa are required to meet targets on black ownership as part of a programme to the rectify the disparities of white apartheid rule.

The target under the country’s mining charter is 26% black ownership by 2014.

“Through its previous direct sales of assets and the new empowerment transactions announced today, Becsa is now in a position of more than meeting the transformation requirements,” the company said in a statement on its website.

The value of the deals announced yesterday was not disclosed.

South Africa’s second-largest exporter of thermal coal said it has also agreed to sell additional resources to Kuyasa Mining to extend the life of that company’s Delmas colliery.

Kuyasa was created more than 10 years ago, when the BHP unit sold its Delmas mine in its first empowerment deal.

Pembani Group, chaired by Phuthuma Nhleko, the former chief executive of South African mobile operator MTN Group, is an investment company with interests in mining and petroleum.

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