German speciality chemicals group Lanxess was granted new-order mining rights by the Department of Mineral Resources (DMR) in April, resulting in organi- sational changes within the company’s mining operations, including changes to the ownership structure and the name of the chrome mining business, says Lanxess South Africa MD Dr Karl-Rudolf Gassen.

Following the completion of the rights transfer from Lanxess founding company Bayer to Lanxess, the Rustenburg chrome mine will now conduct business under its new name – Lanxess Chrome Mining.

Further, newly formed company Dirlem, which is 49%-held by Lanxess employees through an employee trust, with the remaining 51% being held by black economic-empower- ment (BEE) transaction company, Direng, will hold 26% of the shares in Lanxess Chrome Mining.

“In terms of the Mineral and Petroleum Resources Development Act, only a company that has been awarded new-order mining rights may conduct mining operations in South Africa.

This award is also crucial for Lanxess in ensuring continued and sustained mining operations. For example, the new-order mining rights have presented a new shareholder structure, from which employees will also benefit,” Gassen tells Mining Weekly.

A new-order mining rights application must satisfy several prerequisites, including the submission of a mining works programme, a social and labour plan, an environmental management programme and the applicant’s status in terms of the participation level of historically disadvantaged South Africans in the ownership and management of the organisation, Gassen points out.

“As Lanxess, we are fully supportive of the initiatives of the South African government, through the DMR to find equitable ownership structures within the mining industry. Thus, we have decided that our employees would form part of our BEE partnership,” he says.

Through this arrangement, as of June 2017, Lanxess employees will be part of the company’s profit sharing of dividends.

“The company believes that this will result in a sense of ownership among its employees, which is set to bring positive results for the employees, the company and the shareholders,” Gassen adds.

Further, the attainment of the new-order mining rights will provide Lanxess with the scope to fully implement its business strategies, such as combining economic success with social value. This will enable the company’s mining operation to achieve sustainable growth.