Palabora sells 26% stake to BEE group
Palabora Mining Company has completed a broad-based black economic empowerment deal which involves selling 26percent of its operations to a group led by George Negota, former chairperson of the Palabora Mining Company board, employees and BaPhalaborwa communities.
In a newly formed, special purpose subsidiary of Palabora Mining Company, a community trust will be held for the benefit of the Makhushane, Selwane, Maseke, Mashishimale, and Majeje communities, which will acquire 10percent of the equity.
Matt Gili, managing director of Palabora Mining Company said: "We are delighted that this long and thorough process is closer to completion and that further benefits will flow to the communities from completion of the transaction.
"In addition to this, Palabora will continue to be a major contributor to the Phalaborwa economy."
Gili said Palabora paid R235million in corporate tax during 2008 and spent R2,6billion with suppliers of which R1,1billion was with broad-based BEE companies.
About R964million of the company's supplier-spend was in the BaPhalaborwa area with R679million going to empowerment enterprises.