Tharisa is a 100% owner of Tharisa Minerals, it previously held 74% subsidiary. Tharisa plc acquired the remaining 26% shareholding in Tharisa Minerals in a landmark broad-based black economic empowerment (‘BEE’) transaction, from the following holders; Thari Resources Proprietary Limited (‘Thari Resources’) owning 20% and The Tharisa Community Trust (‘the Trust’) owning 6%.
The Transaction is supportive of and consistent with the fundamental principles and objectives enshrined within the Minerals and Petroleum Resources Act (2002) (‘MPRDA’), and the recent court ruling in South Africa clarifying the ‘once empowered always empowered’ position for mining companies. This ruling has afforded the Company the opportunity to constitute Tharisa Minerals as a wholly owned subsidiary that continues to meet the requirements of the MPRDA and the Mining Charter (2004), while allowing the BEE shareholders to benefit from the wider and diversified asset portfolio of the Tharisa plc group.
The proposed share exchange and the valuation of the exchange account for the historical funding provided by the Company in its role as the investment holding company, with the BEE shareholders having a free funded carry, resulting in our BEE shareholders holding unencumbered shares in Tharisa Minerals and now Tharisa plc.
The simplification of the corporate structure ensures that our BEE shareholders participate in regular dividend flows consistent with the Company’s shareholders with a stated dividend policy of distributing at least 15% of consolidated net profit after tax, while benefiting from the Company’s growth strategy, broadening their exposure to beyond the Tharisa Mine. The broader exposure includes the Group’s integrated sales and logistics platform, research & development and beneficiation division and strategic interests in PGM and chrome projects in the Republic of Zimbabwe.
The Tharisa Community Trust will remain a shareholder in Tharisa plc for the Tharisa life of mine.
In addition, Tharisa Minerals, through its Social and Labour Plan contributes toward the upliftment of the workforce as well as the community residing in the vicinity of the Tharisa Mine, through the initiation of projects within the community, encouraging the development of black empowerment business entities, providing opportunities for these businesses to provide goods and services and by recruiting, training and developing HDSAs within its businesses.Group structure South Africa