Khumalo seems to see a "solution" coming making ZA safe for exploitation. Anthrax? If nothing else this pr sends a message to shareholders nervous about SA mining stocks because of this supposed "nationalization" of minerals, which even after a serious pull-back are up a LOT. Perhaps having Mandela at the listing ceremony for Gold Fields (GFI) on the NYSE foreshadowed this spin.
---------------------------------------------------------------------------- ---- Khumalo takes stake in UK mining firm. Resources Correspondent
MINING and finance entrepreneur Mzi Khumalo is expected to take a stake of about 18% in UK-listed Cluff Mining.
It is understood that Khumalo, who said only last week that he aimed to build a diversified mining company, has completed the deal with Cluff, which already has platinum operations in SA. An announcement is expected soon.
At Cluff's current share price Khumalo, who is believed to have secured a financing deal with a well-known UK bank, would be investing about £8,8m in Cluff.
Khumalo has said in the past that he is keen to build up a platinum interest.
This would be added to the entrepreneur's other interests held though Mawenzi Resources, which is owned by Khumalo, his family and management.
Mawenzi already holds a stake in Harmony Gold worth about R1,6bn, just less than 30% of another SA-listed company, Afrikander Lease (Aflease), and also 80% of the small Agnes gold mine in Barberton.
Anglo Platinum (Angloplat) announced on Tuesday that it had entered into an agreement with Cluff that would involve the development of the Sheba's Ridge platinum project in Mpumalanga. The two companies had agreed in principle to establish a joint venture surrounding the Sheba's Ridge project.
As part of the agreement, Angloplat would hold a 50,33% stake and Cluff 49,67%. The UK mining company also secured the right in the terms of the deal to increase its stake in Sheba's Ridge to 87,5%.
The agreement would come at an ideal time for Cluff Mining in the light of the Minerals and Petroleum and Resources Bill, which is expected to become law in the next few months.
The new law will demand that any company, whether it plans to prospect or mine minerals in SA, must have a black empowerment partner.
Through selling an equity stake to Khumalo, Cluff would fulfil this aspect of the law at least in part.
Cluff also has other platinum projects in SA in the form of the Blue Ridge Platinum Project.
Earlier this year, the company said it would go ahead with a feasibility study at the site.
Khumalo has also said that he would be interested in investing in Zimbabwean gold operations, but would give no more details.
The current political situation in the country aside, Khumalo said last week that now was a good time to invest in Zimbabwe as the situation in the country could only get better.
Cluff Mining owns the Maligreen gold deposit about 300km southwest of Harare, according to the company's website.
As Khumalo adds to his mining asset base, he will be rapidly joining the handful of key empowerment figures in SA's mining sector.
These include the chairman of Armgold, Patrice Motsepe, Mvelaphanda Resources chairman Tokyo Sexwale, Bridgette Radebe of Mmakau Mining and Paseka Ncholo, who heads the Khumo Bathong Consortium.