JOHANNESBURG (miningweekly.com) – Black economic empowerment (BEE) resources firm Mvelaphanda Resources (Mvela) on Friday refuted claims that it was interested in acquiring control of platinum producer Lonmin’s black empowerment partner, Incwala.

Mvela said in a statement that its unbundling strategy remained in force and on track, and as such, it had no interest in acquiring control of Incwala.

Lonmin said this week that it could be called upon to pay out R930-million in loan guarantees for shareholders of Incwala, which Lonmin helped set up five years ago.

Newswire Reuters quoted the company as saying that discussions were being held with the black shareholders of the firm about the future ownership of Incwala, and if these discussions were not successful, Lonmin could be called upon to provide funds under guarantees given in 2004.

Mvela’s apparent disinterest in Incwala stems from its decision to delist from the JSE in early 2010, as it took the decision to unbundle.

Chairperson Lazarus Zim previously stated that the unbundling strategy eliminated risk for shareholders at a time of “unprecedented volatility”.

“The possible unlocking of value inherent in the holding company structure is likely to be in excess of R2-billion, or over R10 for each Mvela Resources share,” he stated.

Mvela Resources would unbundle its 62,8% stake in Northam Platinum to shareholders after September, when Northam completed its bankable feasibility study (BFS) of the Booysendal project.

Another issue which added to the unbundling was that JSE listing rules precluded a listed company from generating more than half of its earnings from an investment in another listed firm, or having more than three-quarters of its net asset value tied into another listed company.

Executive manager: commercial James Wellsted noted that to remain listed with only Northam shares in its structure, Mvela would have had to pay JSE listing fees as well as produce annual reports, which meant unnecessary costs.

It is intended that both of Mvela Resources’ BEE shareholders, Afripalm and Mvela Holdings, would remain as key, long-term BEE shareholders in Northam following the unbundling. The BEE shareholders would have a direct shareholding of over 27% in Northam.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.