The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Thursday, 24th August 2006 (2052 views)

South African black empowerment company Mvela Resources could buy another 11 per cent of mining giant Gold Fields, Mining Weekly reports.

Mvela's existing investment in Gold Fields recently led to skyrocketing headline share earnings, which rose from 91c last year to more than 1,600c for the year to the end of June.

Now, because of laws that require mining firms at work in South Africa to sell 26 per cent of their assets to black investors before 2014, Mvela could stand to get a further stake.

"We've had discussions with Gold Fields around that and we're testing financing methods," said Mvela chief executive Pine Pienaar. "It's a given we'll pursue the 11 per cent going forward."

The extra 11 per cent would bring Mvela's Gold Fields stake up to 26 per cent.

The empowerment law is in place to help make amends for discrimination suffered during the period of apartheid and will help struggling black companies to enter the country's mainstream economy.

Mvela is also considering a move whereby its direct empowerment shareholding would increase to more than 50 per cent.

The firm is committed to using its expertise "to protect and develop the economic, social and natural environment in which [it operates]".

 

« Back to Gold News stories