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RETIREMENT OF DEPUTY CHAIRMAN - Mineral Deposits Limited©2006
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February 2009

Anglo American has pledged R1-million to help the Cholera Relief Operation in both Zimbabwe and the Limpopo province, while BHP Billiton, through its Development Trust, has contribute a sum of R600 000 to the fight against the current cholera outbreak in Limpopo.

The money donated from the Anglo American Chairman’s fund will be managed by the South African Red Cross Society (SARCS), which has long operated in these territories and is in the process of implementing an extensive recovery plan. 

Anglo’s donation will be used as part of the SARCS’ relief operation to facilitate medical treatment and to provide clothing, shelter, and food, as well as education to reduce and minimize infection.

In addition, Anglo Coal’s eMalahleni Water Reclamation Plant will deliver 72 000 litres of potable water to the affected areas. 

Kuseni Dlamini, head of Anglo American South Africa and chairman of the Anglo American Chairman’s Fund said: “Anglo is committed to supporting the communities in which it operates as well as the health of its employees. We hope today’s donation to the Limpopo and Zimbabwe communities will help bring some immediate relief to the affected people.”

Reliable reports from the World Health Organisation (WHO) and the South Africa National Department of Health indicate a significant challenge arising from the local shortage of drugs, medical supplies and health professionals.

The outbreak is likely to continue for some time as a shortage of potable water develops, as well as difficulties with sewage treatment and waste disposal.

WHO and the Zimbabwean Ministry of health and Child Welfare have set up a Cholera Command and Control Centre to co-ordinate and strengthen response activities. WHO’s major functions are surveillance, case management, water and sanitation and infection control, social mobilization and logistics.

By 13 January 2009, WHO had recorded 40 448 cases of cholera and 2 106 cholera related deaths in Zimbabwe

Dr Xolani Mkhwanazi, chairman of BHP Billiton South Africa said, “Our approach to workforce and community health is incorporated in our Charter, which states that we have ‘an overriding commitment to health, safety, environmental responsibility and sustainable development’. Our aim is to maintain a healthy workforce. Assisting local communities address community health issues is an important step towards achieving this”.



Richards Bay Minerals (RBM), a joint venture between Rio Tinto and BHP Billiton, announced that definitive binding agreements for a 26% broad based black economic empowerment (BBBEE) consortium. These agreements are the culmination of years of work on partner selection, community engagement, negotiation and the ratification of legal agreements with all stakeholders. The transactions to date and is valued at approximately R4.5-billion. 

The funding arrangements are being finalized by RBM’s existing shareholders and the BBBEE consortium. RBM’s current shareholders will facilitate the funding of the equity acquisitions by the incoming BBBEE shareholders. The four hot communities (Sokhulu, Dube, Mbonambi and Mkhwanazi) will not be required to contribute equity upfront for their stake in RBM. 

An important feature of the transaction is its focus on community development. A community development trust for each community, through which they will hold shares in RBM, is to be established. A public benefit trust (PBO) will be established by each of the communities to facilitate development projects in each area. RBM has undertaken to make once-off endowments of R17.5-million to each participating community’s PBO trust on completion of the transaction. Trickle dividends and corporate social investment (CSI) of R3-million a year will flow to each community in addition to RBM’s existing CSI programmes. 

The Sokhulu and Dube communities have signed the transaction agreements, while discussions with the Mbonambi and Mkhwanazi communities are ongoing with a view of incorporating them formally into the transaction. In the interim, the shareholding earmarked for these communities has been reserved and warehoused in a special trust.

The transaction will become effective upon the fulfillment of the remaining outstanding conditions, which include finalization of the funding agreements and approval by the South Africa Competition Authorities.

All RBM’s approximately 1 750 permanent employees, the majority of whom are historically disadvantaged South Africans with women making up 12% are, will participate equally in the employee share participation scheme (ESPS). A special class of shares will be created for issue to the EPSP and these shares will be entitled to a priority dividend distribution. The dividends will be distributed equally to all qualifying employees. The ESPS will hold a direct 2% equity interest in RBM.

An extensive BBBEE partner selection process was conducted during 2007 and seven lead investor companies were selected. They, together with RBM’s four host communities, will own 24% of RBM. The interests of the communities and lead investors will be held through a special purpose company (BEE Holdco). BEE Holdco is chaired by JB Magwaza, chairman of the Imbewu Consortium. The lead investors (including a women’s group) will hold a 55% interest in BEE Holdco with 45% held by the communities.

Cameron McRae, managing director of RBM said: “We are delighted that this long process is closer to completion and that further benefits will flow to the communities from completion of the transaction. RBM will continue to support the community development programmes running in the host communities. In addition to this RBM will continue to be a major contributor to the KwaZulu-Natal economy. 

“RBM paid nearly R760-million in tax during 2007 and spent R3.1-billion with suppliers, many of whom are small black owned enterprises. In 2008, R1.2-billion was spent procuring from BEE ventures and R81-billion was spent with businesses from the four communities. RBM has been a key generator of employment in the province and will continue to be over coming decades.



Anglo Platinum and the National Department of Housing (NDOH) have signed a memorandum of understanding to establish a partnership to provide 20 000 houses for Anglo Platinum employees in Limpopo and North West in the next five to ten years.

Anglo Platinum will invest a substantial amount in servicing the land portions and the government subsidy contribution over 10 years is more than R900-million. The total investment, including social and economic amenities, could run into billions of rands. The programme is expected to benefit more than 120 000 people. 

The memorandum was signed by Anglo Platinum’s chief executive officer, Neville Nicolau, and NDOH deputy director-general, Kaba Kabagambe, at a ceremony in mid-November 2008.
The memorandum aims to make available 12 000 housing units in the North-West Province and 8 000 units in Limpopo, funded by both Anglo Platinum and government subsidies.
“Anglo Platinum will not only provide funding for the project, but will accelerate delivery of quality housing solutions for its employees, while allowing existing communities to grow and become sustainable,” he said. “We are pleased with this partnership because it will assist us to fast-track the provision of adequate housing and the sustainable integration of our employees in communities around our operations.” 

Kaba Kabagambe welcomed the agreement. And he also noted a key constraint for the department had been the availability of suitable land.



De Beers Consolidated Mines (DBCM) and SANParks recently sealed an agreement whereby De Beers will include 36 000 ha of West Coast farms into an expanded Namaqua National Park. The largely undisturbed and environmentally sound coastal reserve, previously managed by De Beers, will enhance the ecological viability of SANParks’ internationally recognized biodiversity hotspot.

The inclusion of the 36 000 ha area will expand the Namaqua National Park all the Way to the coast and make it the fifth largest national park after Kruger, Kgalagadi, Addo and Richtersveld. Mabunda, the chief executive of SANParks, remarked that the incorporation of this land into the Namaqua National Park is of critical importance to biodiversity hotspot in the world, as it contains key components of the succulent Karoo biome.


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