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Kumba Iron Ore (Kumba) nears another milestone in its diversified transformation programme, the company announced.
The SIOC Community Development Trust is nearing the redemption of all its preference shares held by Kumba Iron Ore Ltd, the conclusion of which will free up millions more each year to fund community development in and around Sishen Iron Ore Company's mining operations. Since inception Kumba has shown an immense commitment to both broad based black economic empowerment and wider health and educational transformation schemes. This commitment has involved employees, local communities and specific social investment projects. One such success story is the SIOC Community Development Trust (or "the Trust"). The Trust was established in 2006 as a 3% shareholder in Sishen Iron Ore Company ("SIOC") as a broad-based socio-economic empowerment ownership initiative. Less than four years after its establishment, using the SIOC dividends paid to date, the Trust will soon be in a position to redeem in full the R458 million in preference shares issued to pay for its Sishen Iron Ore Company ("SIOC") shares. This is well ahead of the original projections. Once the redemption process is complete this will free up substantial funds more each year to fund numerous new community development projects. Kumba is a proud to be associated with the Trust and has played an active role in a number of its charitable activities since its listing in 2006. Kumba, via its shareholding in SIOC is represented on the Board of the Trust and actively contributes to assisting the Trust in reaching its objectives Aside from redeeming a substantial amount of preference shares and declaring preference dividends to Kumba, out of the R570 million dividends received from SIOC since 2006, the Trust has also invested R22,.5 million in community development projects up to the end of 2009, and is expected to contribute an additional R8,5 million to the communities in 2010. Commenting on the news Kumba CEO, Chris Griffith said: "This is an exciting achievement, particularly taken in the context of the current worldwide economic malaise. It is evidence that broad based BEE can and does work! We are delighted that the steady stream of Kumba dividends has enabled the Trust to reach this position so quickly after its establishment. It reaffirms our mission at Kumba; of people making a difference, in a company making a difference."." Alongside Kumba's work with the Trust, the Company has made immense strides to empower employees and build a varied skills development programme. Kumba's employees also benefit from the broad-based employee share participation scheme or "Envision" which received R189 million in dividends from the 2009 final dividend paid by SIOC. Since 2006 Envision has received R593 million in dividends from SIOC, and employees (through Envision) have received R125 million, with R468 million used to date to repay funding and interest. This striking success in less than four years has had a vast impact on the empowerment of Kumba's black employees. |
