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Anglo American creates new R7bn empowerment company - Anglo Inyosi Coal

By unknown | Feb 09, 2007 | COMMENTS [ 0 ]

Zweli Mokgata

Zweli Mokgata

Global resources giant Anglo American yesterday reaffirmed its commitment to transformation announcing the sale of some of its coal assets to a group of women and black investors, creating a new R7 billion empowerment company Anglo Inyosi Coal.

Anglo American subsidiary Anglo Coal said that it had signed a heads of agreement (HoA) with Inyosi, a newly formed broad-based BEE company made up of the women-controlled Lithemba Consortium, investment company Pamodzi Coal, WDB Investment Holdings and local communities. Inyosi will acquire 27percent of the combined entity and Anglo Coal will hold 73percent.

Anglo Coal chief executive Ben Magara said the organisation would enhance transformation not only through its operations, but also by fulfilling promises to the communities in which the company operates.

"We are witnessing the genesis of a leading coal producer, with significant historically disadvantaged South African ownership and management, which is well placed to benefit from the increasing demand for coal from its productive and greenfield assets," Magara said.

"This deal is a tangible demonstration of the philosophy of 'tiyende pamodzi' or 'together we strive' since we have invited and partnered with a large number of broad-based groupings," said Pamodzi Coal chairman Ndaba Ntsele.

Acting chief executive of Anglo American South Africa, Philip Baum, said: "We are creating a leading South African coal company with a diverse group of committed and effective empowerment partners."

Anglo American announced this week that it increased its procurement spend with black-owned and managed small and medium enterprises (SMEs) to R12,3 billion last year - up 37percent on the year before.

"On the one hand we have concluded big deals worth R35 billion over the past 18 years that have led to black-owned and managed companies of substance such as Johnnic, African Rainbow Minerals, Mvelaphanda, Eyesizwe and Exxaro," said Baum.

"At the other end of the scale, we have Anglo Zimele [the group's business development and empowerment initiative] creating SME opportunities in the BEE and mining supply arenas."


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