Impala Platinum Holdings has announced a R9 billion deal that will give Black investors a 13% stake in the South African mining company and the Bafokeng business it acquired last year.
Known as Implats, the Johannesburg-based company took control of Royal Bafokeng Platinum (RBPlat) nearly a year ago after an 18-month takeover battle with Northam Platinum. Prior to the takeover, the largest shareholder in RBPlat was the Bafokeng nation, a community in South Africa’s North West Province.
As part of the acquisition approval conditions, Implats committed to increasing Black ownership in the platinum producer. Under this black economic empowerment deal, local communities and employees will each receive a 4% stake, while a group led by Siyanda Resources will hold a 5% share, according to a statement from Implats on Monday.
In 2004, South Africa introduced a mining charter to more broadly distribute the benefits of mining among the country’s citizens and address the racial discrimination of apartheid. At that time, the charter set a minimum Black shareholding target of 26%.
