Anglo to unveil Kumba shake-up

JOHANNESBURG – Diversified mining group Anglo American is due to unveil a restructuring of its majority-owned iron ore firm Kumba Resources next week, a mining news website said.

Officials from Anglo and Kumba were not immediately available for comment on Friday, but website Miningmx quoted an Anglo spokeswoman as declining to comment on market speculation. Last month Kumba said it was in talks with Anglo over a black economic empowerment (BEE) deal, which might lead to a wider restructuring of the group, but gave few details.In July, Financial Mail magazine said Kumba and Anglo planned to split its iron ore activities and coal/base metals into two separately listed firms, without giving a source for the report.Miningmx said black-owned companies Eyesizwe Coal, Eyebantu and the Tiso Group will be the new majority owners of the restructured Kumba, which will hold base metals, minerals sands and coal activities.Iron ore operations would be separately listed, with Anglo as the main shareholder, it added.In last month’s statement, Kumba said a BEE deal may lead to the acquisition of Anglo’s Namakwa Sands operation, with an aim of merging it with its own majority-owned mineral sands unit, Tico Ltd of Australia.Mineral sands comprise titanium minerals – rutile and ilmenite – plus zircon and monazite and are used in televisions, electronics, x-ray screens and pigments.Kumba has been working for months on a deal to satisfy the requirements of the government’s Mining Charter which aims to increase black ownership of the mining industry.The mining charter, which came into effect in May 2004, requires companies to sell or transfer 15 per cent of their South African assets to blacks within five years and 26 percent in 10 years.Companies must meet a range of other requirements to renew their mining licences, including increasing blacks in management to 40 per cent and improving housing conditions for workers.South Africa’s mainstream economy is still largely controlled by whites 11 years after the end of apartheid.Kumba’s shares fell 0,5 per cent to 94,50 rand by 0810 GMT, while Anglo’s shares in London shed 0,7 per cent to 1,639 pence, compared to flat main indices in both markets.- Nampa-ReutersLast month Kumba said it was in talks with Anglo over a black economic empowerment (BEE) deal, which might lead to a wider restructuring of the group, but gave few details.In July, Financial Mail magazine said Kumba and Anglo planned to split its iron ore activities and coal/base metals into two separately listed firms, without giving a source for the report.Miningmx said black-owned companies Eyesizwe Coal, Eyebantu and the Tiso Group will be the new majority owners of the restructured Kumba, which will hold base metals, minerals sands and coal activities.Iron ore operations would be separately listed, with Anglo as the main shareholder, it added.In last month’s statement, Kumba said a BEE deal may lead to the acquisition of Anglo’s Namakwa Sands operation, with an aim of merging it with its own majority-owned mineral sands unit, Tico Ltd of Australia.Mineral sands comprise titanium minerals – rutile and ilmenite – plus zircon and monazite and are used in televisions, electronics, x-ray screens and pigments.Kumba has been working for months on a deal to satisfy the requirements of the government’s Mining Charter which aims to increase black ownership of the mining industry.The mining charter, which came into effect in May 2004, requires companies to sell or transfer 15 per cent of their South African assets to blacks within five years and 26 percent in 10 years.Companies must meet a range of other requirements to renew their mining licences, including increasing blacks in management to 40 per cent and improving housing conditions for workers.South Africa’s mainstream economy is still largely controlled by whites 11 years after the end of apartheid.Kumba’s shares fell 0,5 per cent to 94,50 rand by 0810 GMT, while Anglo’s shares in London shed 0,7 per cent to 1,639 pence, compared to flat main indices in both markets.- Nampa-Reuters