Implats has agreed to an equity deal for the benefit of some of its employees working at the Impala operation. The deal comprises 4% of Impala’s share capital and will be placed in the newly formed Impala Employee Share Ownership Trust.

The Board of Directors of Implats has approved the provision by Implats of a loan of approximately R1.1 billion to the Trust to enable the Trust to subscribe for the Trust Shares.

Impala is Implats’ primary operational unit and has operations situated on the Impala lease area on the western limb of the world-renowned Bushveld Complex near Rustenburg, and in Springs, east of Johannesburg. In FY2014, a year impacted by a five-month strike, Impala produced 411000 ounces of refined platinum.

Implats’ Chief Executive Officer, Terence Goodlace commented,

“This transaction provides a meaningful way of aligning employees’ interests with the future profitability of Impala, while also increasing the ownership of Historically Disadvantaged South Africans to well above the 26% level.”

Who will benefit?

The beneficiaries of the Trust will be all Patterson grade A to C level permanent employees of Impala who work from time to time at the Impala Rustenburg North and South mining operations, mineral processing and services, and the refinery, provided they meet the relevant qualification criteria.

Details of the Trust

The loan provided by Implats to the Trust for the subscription by the Trust of the Trust Shares carries no interest and has no final repayment date. The loan will be repaid through Impala’s future dividends to which the Trust will be entitled as a shareholder in Impala. Dividends paid from Impala’s future profits will be distributed to the Trust to be utilised as follows:

  • 65% to all qualifying beneficiaries under the Trust; and
  • 35% to Implats towards repayment of the loan provided.

Following the repayment of the loan in full, qualifying employees will receive 100% of the dividends declared by Impala to the Trust and this will endure for the life of the mine and its associated processing and refining operations.

Impala will cover the costs of operating the Trust.