arm DISHES OUT bee MILLIONS
The trust for the beneficiaries of the African Rainbow Minerals broad-based economic empowerment have received their second cash distribution of R25 million.
This brings to R32 million the total amount of dividends the trust has distributed to beneficiaries over the past two years.
The trust holds about 10 percent of the share capital of ARM.
The beneficiaries comprise the five ARM Provincial Rural Upliftment Trusts, which are aimed at helping the poor and rural communities around the country.
They also include the ARM Women's Upliftment Trust, various church trusts, two trade union companies representing approximately 500000 workers, entrepreneurs, community leaders, women and youth-owned SMMEs.
The cash distribution will be used to build schools, laboratories, creches, clinics, hospitals and other community projects in rural areas.
The current value of the ARM BBEE Trust, based on ARM's market capitalisation as at November 24 this year, is about R1,7 billion.
Minus its debt or loan of R1billion it leaves the trust's net value at about R700 million.
It is expected that some of the trusts' shareholding will be sold to pay the debt.
The handover of the dividends took place in Sandton on Friday during the ARM BBEE Trust's briefing to discuss the trust's structure - a unique vehicle for the empowerment and upliftment of the country's poor and the rural communities.
ARM executive chairman Patrice Motsepe said : "The long-term political and economic stability of South Africa requires that as many South Africans as possible, particularly the poor and unemployed, participate in and benefit from the growth and development of our economy."
This second cash distribution is particularly significant, given the turbulent global financial markets and weak commodity prices.
The briefing was attended by Minister of Minerals and Energy Buyelwa Sonjica, King Goodwill Zwelithini, other prominent kings and traditional leaders from each of the nine provinces.