Issued by Ministry of Public Enterprises
8 November 1999
Agreement has been reached on the loan agreement following a meeting of the Departments of Public Enterprises, Finance, Minerals and Energy Affairs, representatives of Alexkor Board and the Nabera Consortium. The parties agreed on the format of the loan. I t was agreed that the principle signatories should be the Alexkor Board and BOE.
In terms of the agreement, the Department of Finance will guarantee Alexkor, securing the loan on the basis of a pre-agreed incremental draw-down basis linked to a business-plan. There was consensus that this approach is the most favourable to all parties.
We further confirm that Nabera has formally informed the Department of Public Enterprises(DPE) of Mmakau Mining's withdrawal from the Consortium as well as the resignation of Nabera's chairperson. The Department of Public Enterprises is currently consideri ng the proposals for substitutes submitted by Nabera. The basis of the Department's assessment shall be consideration of the evaluation criteria when Nabera was selected. DPE has already indicated its requirement that the replacement should be a black-owne d mining enterprise that has expertise in operations. In fulfilment of this, Nabera has already submitted a number of options that are being assessed.
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