JOHANNESBURG (miningweekly.com) – Discussions between copper producer Palabora Mining and potential black economic-empowerment (BEE) shareholders were continuing, the JSE-listed company said on Tuesday.

Palabora Mining, which is part of the Rio Tinto group, announced in November last year that it had entered into discussions for a potential BEE deal.

The transaction would involve an internal leveraged structure, pursuant to which the BEE shareholders would acquire an equity interest of not more than 26% in a newly formed, special purpose subsidiary of Palabora.

Under South Africa's mining law, companies are required to sell a 15% stake to black investors by 2009, and a 26% holding by 2014.

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