JSE-listed platinum miner and the world’s second biggest miner of the precious metal, Impala Platinum (Implats), on Thursday said it had concluded an equity deal set to benefit its employees.
In terms of the deal, the newly-formed Impala Employee Share Ownership Trust has subscribed for new Impala shares comprising 4 percent of Impala’s share capital.
The Implats board has approved the provision by Implats of a loan of about R1.1 billion ($95.2 million) to the Trust to enable it to subscribe for the Trust Shares.
Impala has mining and processing operations situated on the Impala lease area near Rustenburg and refining operations in Springs, east of Johannesburg.
Terence Goodlace, Implats CEO, said the deal provided a meaningful way of aligning employees’ interests with the future profitability of Impala.
“This is also increasing the ownership of Historically Disadvantaged South Africans to well above the 26 percent level,” Goodlace said.
“The consultation processes to discuss details pertaining to the transaction have commenced and will continue early in 2015. These will take place in, amongst other, the forums agreed post the conclusion of the wage settlement signed on 23 July 2014 between Impala and the Association of Mineworkers and Construction Union (AMCU), Goodlace added.