JOHANNESBURG (miningweekly.com)  – Diversified mining company Exxaro on Tuesday published further comments and calculations on the implementation of its replacement black economic empowerment (BEE) transaction.

Exxaro announced in November last year that it would put in place a new BEE scheme that would decrease its BEE ownership from 50.19% to 30%.

The first step of the five-step transaction involves existing Main Street 333 shareholders investing into a BEE special purpose vehicle, the new BEECo, along with the State-owned Industrial Investment Corporation (IDC) and Exxaro itself.

The BEECo is raising funding from third parties, R700-million of which will be guaranteed by the IDC, and this funding will be used to buy additional Exxaro shares at a discount.

The outcome is that the new BEECo will own 30% of Exxaro shares, creating a dilution of 12.9% in the share price of Exxaro, which is headed by CEO Mxolisi Mgojo, the current Chamber of Mines president.

One of the largest black-owned South Africa-based diversified resources companies, Exxaro has also been verified as a Level 6 BEE contributor.

The Johannesburg Stock Exchange-listed company is one of South Africa’s largest coal producers and also has two wind-farm projects, Amakhala Emoyeni and Tsitsikamma Community Wind Farm, both running at planned capacity.