Macozoma praises maligned BEE after R11bn Exxaro deal

Veteran businessman Saki Macozoma has heaped praise on black economic empowerment (BEE), saying a transaction that will see his company being paid over R11-billion for the acquisition of manganese assets is proof that the policy works.

- 

The Tshipi Borwa manganese mine in Northern Cape has been sold in a R11,7-billion deal between Ntsimbintle Holdings and Exxaro Resources.

Macozoma said this during an interview with Sunday World after his company Ntsimbintle Holdings, and its strategic partner OM Holdings, on Thursday concluded an R11.7-billion sale of their manganese assets to Exxaro Resources following regulatory approval.

This means Exxaro Resources' subsidiary ManganExx will acquire 100% of the issued shares of Ntsimbintle's subsidiary Tshipi é Ntle Mining and 19.99% of the issued shares of Australian-based Jupiter Mines.

Both Tshipi and Exxaro said the transaction has become unconditional and is expected to be implemented on or before February 27.

Exxaro was under pressure to diversify from its coal asset base, as the company had cash on hand as of December 31 of R19.7-billion and net cash of R11.8-billion. The sale comes amidst growing demand for manganese worldwide as it is a critical component in the production of renewable energy.

To Macozoma, who chairs Tshipi é Ntle, the transaction means BEE policy isn't doomed.

"The transaction is very significant to the debate about and around BEE at the moment. The policy is under attack from domestic naysayers to the friends of the current administration in the US. The main line of attack is that BEE is just a form of patronage for the politically connected and never resulted in the creation of new businesses. This transaction puts paid to this notion."