ANGLO American Platinum says it will give 10-year loans to indigenous Zimbabweans to buy a 51% stake in its local unit, Unki Platinum Mine.
The world’s largest platinum miner agreed on Thursday to transfer the majority shareholding in Unki in line with the country’s indigenisation laws.
The value of the 51% stake was put at US$302 million, the National Indigenisation and Economic Empowerment Board said in a statement.
But the transaction was concluded at a discount of 53% on the value of the company in recognition of the sovereign ownership of resource owned by Zimbabweans.
As such, the discount translates to US$160 million.
“The current shareholders of Unki Mine are going to provide funding to the indigenous partners for the acquisition of the 51% shares,” said NIEEB.
“The Ministry (of Youth Development, Indigenisation and Empowerment) and NIEEB would like to thank the shareholders of Unki Mine for their commitment and effort to achieve indigenisation compliance.”
In terms of the agreement, it is expected that the indigenous parties would be required to use their shares as security for the payment of this debt.
Under the transaction, Tongogara Community Trust, employees and strategic investors would get 10 % each while the State fund would acquire 21%.
Several mining firms, including another platinum mining company, Zimbabwe Platinum Holdings, have agreed terms with the Government on complying with the 51% indigenisation requirement.
Last month, Blanket gold Mine, owned by Canadian firm — Caledonia Mining Corporation — became the first mining company to complete the full transfer of a 51% stake to several indigenous parties.
Several companies across the range of sector have already agreed with the Government to transfer a 51% equity stake to locals as required by the indigenisation law.
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