Issued by: Ministry for Public Enterprises
Friday, 26 February 1999
Public Enterprises Minister Stella Sigcau today announced that Nabera, had been selected as the successful bidder for Alexkor Limited management contract, the state-owned diamond mining company.
This is in line with Government's policy as stated under the objectives on the restructuring of state assets "The South African economy is characterised by the concentration of ownership in the hands of a limited number of wealthy shareholders. Restructuring provides an opportunity for widely dispersed ownership which should be structured at the level of the enterprise on a case basis to protect corporate governance."
The same policy statement is contained in chapter 2 entitled - Participation in ownership and Management in the Minerals and Mining policy for South Africa that "Business ownership and control in the country in general, and particularly in the mining industry given its complexion should be deracialised. The mining industry needs to demonstrate rapid, visible and significant transformation in line with the rest of the South African society. Government will encourage changes in respect of access to ownership and management of the mining industry."
Nabera will be required to manage the mining operations for the period of two years which contract entails assuming full operational responsibility of the mining operations.
Other short-listed bidders for Alexkor management contract were: Namco and New Diamond Corporation/De Beers.
Minister Sigcau noted that apparent concerns regarding the transparency of the selection process were unfounded.
"An Evaluation Committee comprising representatives of government, Alexkor Board, Hatch Africa and our privatisation advisers HSBC Simpson McKie applied the criteria and the weight in assigned thereto as determined by the Alexkor Implementing Team prior to the call for bids,' the Minister said. Factors such as a competent business plan, ability to inject exploration funding and willingness to return Alexkor to profitability were amongst the criteria.
"Once the bidders had been ranked, government as the shareholder, called for certainty with regard to aspects of each of the leading proposals. This was to ensure that delivery could be achieved."
Nabera emerged as the lead bidder based on the criteria applied and furnished government will all the necessary guarantees as to delivery. It is important to stress that the evaluation process did not allow for any bidder to make any material changes to their bid as a result of discussions held with government.
Nabera, as Alexkor's contract manager, and government will meet over the next few weeks to finalise details of the contract as well as details of the relationship with the current corporate Governance structures. It is envisaged once the contract is finalised, Nabera will commence their role as new manager of the mine.
Contact person:
Mr Andile Nkuhlu
Director: Restructuring
083 675 8277