JOHANNESBURG (miningweekly.com) − JSE-listed iron-ore, manganese, chrome and ferroalloy producer Assore on Tuesday announced that it would buy its black partner Shanduka’s 11.8% stake in the company for R2.7-billion and pass the benefit on to its broad-based black-economic empowered (BBBEE) shareholders.

The deal would facilitate Assore’s third BBBEE transaction, securing its long-term empowerment credentials. In line with legislation, all mining companies operating in South Africa have to ensure 26% ownership by historically disadvantaged South Africans by 2014.

Assore chairperson Des Saccosaid that the transaction would deliver value to its former black partner Shanduka, while further broadening the company’s empowerment base by providing support for BBBEE.

Details around the BBBEE transaction with a trust set up by Assore still needed to be refined, the company said in a statement.

Shanduka CEO Phuti Malabie said that the transaction proceeds would be redeployed into other South African investment opportunities.

A detailed circular on the transaction would be send to Assore shareholders in July and a shareholder meeting to approve the transaction would be held in August.

By Loni Prinsloo

Miningweekly