Samancor Chrome shares valued at R2-billion will be sold to the Ndizani Workers Employees Share Ownership Programme (Esop) Trust for R400-million. The purchase will be financed by a five-year loan from Kermas, Samamcor’s parent, which will be repaid at a reduced interest rate of 4,5%.

Samancor Chrome CEO Jurgen Schalamon says that the establishment of the trust represents the company’s commitment to serving its employees by not only redressing historical inequalities, but also creating a “real opportunity for our people to share in the success of the company”.

“We believe that the trust will further entrench our leadership as an employer of choice in the mining industry. It is the first time that the employees of the company become shareholders and, if they perform well, they will reap the rewards. At this point, we are in negotiations with the various unions to increase the shareholders’ benefits from 5,6%, to 9%.”

After the first five years of the scheme, eligible employees will receive an annual allo- cation of units for each full year of service from the trust. This will determine their prorate portion of the share value created in the trust. A capital payment will be made to employees after the first five years of the trust for each full year of service.

“The trust, which has a 30-year lifespan, will be managed by 15 trustees, comprising representatives of trade unions and the company, as well as independent trustees. Trustee representation is heavily weighted towards labour, which was also significantly involved in designing the structure and implementation of the trust.”

ESOP Shop MD Gavin Hartford says the Samancor Chrome employee trust is a “histori- cal first”, as it is aimed to last 30 years to 35 years.

“It is a first time that a company in this country has recognised that empowerment is not a short-time game and is part and parcel of the social fabric of operations in the country,” he adds.

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