BHP enters empowerment transaction with Pembani

BHP Billiton Energy Coal South Africa Ltd (BECSA) has entered into an empowerment transaction with a black-owned consortium led by Pembani Group (Pty) Ltd. The consortium, which will effectively hold an 8% equity interest in BECSA, also includes a broad-based empowerment grouping.

Pembani, formerly Worldwide African Investment Holdings (Pty) Ltd and founded in 1994, is a diversified energy investment company with interests in the mining and petroleum industry.

The shareholders of BECSA have also approved the implementation of an Employee Share Ownership Plan (ESOP) in which participating employees will hold a beneficial interest of 2% equity in BECSA, further enhancing BECSA’s Black Economic Empowerment (BEE) credentials.

Completion of the BEE Transaction and the introduction of the ESOP are both conditional on BECSA receiving consent for those transactions from Eskom Holdings (in addition to certain other minor technical conditions precedent).

Furthermore, the company confirms that it has agreed to sell additional resources to Kuyasa Mining in order to facilitate a longer mine life of its operation near the town of Delmas. The divestment of Delmas coal mine more than 10 years ago to create Kuyasa Mining was BECSA’s first BEE transaction. This latest deal will extend the life of Kuyasa and create more value for the business and its employees.

BECSA is the second largest exporter of thermal coal in South Africa. The company remains committed to South Africa’s transformation goals and economy, as well as the socio-economic development of its host communities.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13122011/bhp_enters_empowerment_transaction_with_pembani/