Johannesburg, South Africa — MININGREVIEW.COM — 07 January 2010 – South African mining companies are by far the most active when it comes to the execution of black economic empowerment (BEE) transactions.
Fin24 quotes a research report from the consulting group “Who Owns Whom” as revealing that 69 transactions, with a value of more than R82.7billion have been completed in the mining industry since the beginning of 2007. It shows that between November 2008 and August 2009 20 transactions worth R24.5billion were signed in the industry.
According to Who Owns Whom managing director Andrew McGregor, the mining industry was the first to announce an empowerment charter in 2004, with black ownership targets of 15% by 2009 and 26% by 2014.
Strict new legislation also makes it impossible for mining companies to obtain new mining licences or rights without the necessary empowerment status, all of which contributes to mining companies focusing increasingly on BEE.
A total of 261 empowerment transactions with a declared value of R200.4billion were completed between January 2007 and August 2009 in South Africa. The value of the transactions was only declared in 69% of the deals, Who Owns Whom says.
“The economic crisis caused many empowerment transactions to flounder between November 2008 and August 2009, but with the recovery of the markets it’s unlikely more major failures will be seen,” says McGregor.