Sasol Mining Pty Ltd and Ixia Coal Pty Ltd Black Economic Empowerment (BEE) Transaction
|Date: ||11 October 2007|
|Sub Category:||Black Economic Empowerment Transaction (South Africa)|
|State/Country:||Republic of South Africa|
|Subject Matter:||Economic Development | Mining and Minerals|
|Summary Information: |
|The Sasol Mining Pty Ltd and Ixia Coal Pty Ltd Black Economic Empowerment (BEE) Transaction ('the BEE Transaction') was announced on 11 October 2007.|
This BEE Transaction aims to create empowerment opportunities for women in the mining industry in compliance with the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry ('the Mining Charter').
A BEE Transaction involves the transfer of all or part of the ownership, management or benefits of an enterprise or productive asset to the control of 'historically disadvantaged South Africans' (HDSAs), a term which includes black, coloured and Indian South Africans, women and the disabled.
|Detailed Information: |
|The Sasol Mining Pty Ltd and Ixia Coal Pty Ltd BEE Transaction will allow for the creation of Ixia Coal Pty Ltd, a black-women controlled coal mining company. Ixia Coal will acquire 20% of Sasol Mining's shares, valued at around R1,9 billion. This will be enabled through an issue of new shares, concluded at a 'fair price' (Sasol Media Release). In the longer term, Ixia Coal's operational capacity will be developed with the assistance of Sasol Mining so that it may operate its own coal mines.|
Ixia Coal will be 51% owned by WIPCoal Investments, a venture between Women Investment Portfolio Holdings Ltd (WIPHOLD), which owns 60%, and Mining Women Investments Pty Ltd, which owns 40%. Sasol Mining will retain a 49% holding in Ixia Coal. Sasol Mining is a wholly-owned subsidiary of Sasol Ltd.
According to a WIPHOLD Media Release, the BEE Transaction will benefit thousands of rural and peri-rural women who will be able to participate in a BEE Transaction for the first time. A Sasol Ltd Media Release states that this BEE Transaction will enable Sasol Mining to achieve compliance with the Mining Charter's ownership requirements 'well before the 2014 deadline.'
|The Transaction agreements were signed on 4 October 2007 and are expected to be completed in 2008 subject to the completion of the following conditions:|
- 'conversion of Sasol Mining's mining rights and obtaining the requisite regulatory approvals; and
- conclusion of the financing agreements with third party lenders.'
(Sasol, Media Release)