BHP Billiton Energy Coal South Africa (BECSA) has entered into an empowerment transaction with a black-owned consortium led by Pembani Group, it announced today.
The consortium will effectively hold an eight per cent equity interest in BECSA, and also includes a Broad-Based Empowerment grouping. BECSA shareholders have also approved the implementation of an Employee Share Ownership Plan in which participating employees will hold a beneficial interest of two per cent equity in BECSA.
BECSA is the second largest exporter of thermal coal in South Africa, while Pembani is a diversified energy investment company with interests in the mining and petroleum industry.
BECSA has also confirmed plans to sell additional resources to Kuyasa Mining in order to facilitate a longer mine life of its operation near Delmas. The divestment of Delmas Colliery more than 10 years ago to create Kuyasa Mining was BECSA’s first black economic empowerment transaction. The deal will extend the life of Kuyasa and create more value for the business and its employees, BECSA said.
In addition to Kuyasa Mining, BECSA has facilitated the establishment and growth of several empowerment companies including Eyesizwe Coal (now Exxaro) and Optimum Coal Holdings. BECSA also facilitated access to export capacity for BEE companies at the Richards Bay Coal Terminal of around 10 million tonnes per annum.
Commenting on the news, BHP Billiton’s president of Energy Coal, Jimmy Wilson, said: “BECSA’s unwavering commitment to the objectives of the Mining Charter and the South African economy will continue to drive us to play an active role in the transformation of mining and economic empowerment of our people.”
