HARARE - Anglo Platinum's (Amplats) Unki Mine has agreed to cede a controlling 51 percent stake to locals, Indigenisation minister Saviour Kasukuwere has announced.

“I am pleased that they have fully complied and we have managed to establish a win-win situation,” Kasukuwere said.

According to the National Indigenisation Board (Nieeb), the deal valued at $142, 8 million will see the Tongogara Community Trust, Employee Share Ownership Trust and unnamed strategic indigenous investors each getting 10 percent stakes valued at $28 million each.

The board’s National Indigenisation Economic Empowerment Fund will be the biggest beneficiary with a 21 percent stake valued at $58 million.

“The transaction value of the company has been arrived at after deducting an indigenisation discount of $312 million in recognition of the sovereign ownership of resources from the company’s value of $592 million,” Nieeb said.

The deal will be financed through a National Vendor Finance (NVF) loan equal to the value of the shares.
“The NVF term will be 10 years from the date of inception of the loan or such longer period as may be determined by Amplats,” the board said.

“The NVF will be repaid through a waiver by the borrowers of their rights to receive future dividends to the extent of 85 percent of dividends paid by the company during the NVF term.”

The beneficiaries’ shares will be used as collateral for the transaction financing.

“For Nieef, initially the shares will not be free of cession and pledge but Amhold have indicated that in future they would be happy to consider request by Nieef for relaxation of the restrictions on usage of the shares.”

Nieed said the empowerment entities will be entitled to appoint one director for each complete nine percent of shares held by them. Unki chairperson July Ndlovu said the conclusion of the deal will allow the company to develop a sustainable business portfolio.

“We are pleased to have reached this significant milestone in our journey as a key investor in Zimbabwe. Our compliance with Zimbabwe’s laws will ensure the long term and sustainable development of Unki,” he said.

Unki produced 51 600 ounces in its last financial year on ore production of just over 100 000 tonnes per month.

The mine is planned for full capacity of 120 000 tonnes/month production which is expected to be reached in 2013.