Lonmin deal promises long-lasting benefits, say Bapo leaders
LEADERS of mining community Bapo ba Mogale on Thursday said that the equity deal signed with Lonmin last year would benefit the community long after mining activity on Bapo-owned land ceases.Speaking at a media briefing in Johannesburg, Bapo ba Mogale spokesman Vladimir Mogale said that the transaction, first announced in July 2014 and finalised last December, had been under discussion between the Bapo ba Mogale community and Lonmin for a number of years."It has long been the intention of community leaders to reduce the community’s reliance on inevitably declining royalty payments, and to stimulate economic development and self-reliance in the region," said Mr Mogale.The transaction, in which the Bapo ba Mogale swapped future royalties for an equity stake, has meant that the community gained a further share in Lonmin, worth R564m at the time, with additional cash flows of R100m payable over five years.However, the deal has become contentious. Some suggest that the community deserves...
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