BEE

Sephaku Holdings Limited was formed on 11 May 2005, and on 1 June 2005, through a further share issue, the group established black-ownership status.

Sephaku Holdings is at all times cognisant of the requirements to comply in all major respects with the terms of the Mining Charter and to be positioned as a preferred partner to non-BEE mining companies. This will enable the company to assist non-BEE companies in the successful procurement of mineral rights through supporting their applications to the Department of Mineral Resources (DMR).

It is the intention of the group to ensure that the spirit of Broad-Based Socio-Economic Empowerment, as defined in the Mining Charter, is fully applied at all levels.

At this stage the company focuses on ownership to ensure that it remains a BEE company. As at 30 June 2010, 47% of the ordinary shares are held by HDSAs.

BEE investments

The group is well positioned in terms of its vision and available expertise to make full use of opportunities in the market. It is the stated intention of the South African mining industry to foster and encourage BEE and transformation in the areas of ownership, management, skills development, employment equity, procurement and rural development. It is therefore imperative that the group achieves the best possible rating for its BEE scorecard.

Mining companies wish to ensure that transfer of ownership takes place in a transparent manner and for fair market value. BEE companies that can afford fair market value are therefore the preferred partners. The South African mining industry is dependent on its success in international markets. This is where it seeks the larger part of its investments and sells most of its product. Sephaku Holdings’ intention is to be well funded, able to attract investment and to be acceptable to both local and international investors in all respects.