(Reuters) – South Africa’s Lonmin has agreed to make a royalty payment in cash and shares to the Bapo community, which will make it a shareholder in Lonmin and will allow the firm to meet South Africa’s requirement on Black Economic Empowerment.
In exchange for the payment the Bapo community, which owns land on which Lonmin mines, will waive its current right to receive royalties from Lonmin’s operating companies Eastern Platinum Limited and Western Platinum Limited (Lonplats).
The transaction, will increase the Black Economic Empowerment equity stake in Lonplats by 3.3 percent, according to Lonmin.
