Archive - 2008

IThe trust, popularly known as the “Super Trust”, was officially launched by Ms Dipuo Peters, Premier of the Northern Cape, at a function in Sandton on 4 December 2008. It was established when the former Kumba Resources was unbundled in September 2006 to form Exxaro and Kumba Iron Ore (Kumba). Kumba is the majority shareholder in SIOC, which owns iron ore mines in Thabazimbi (Limpopo) and Sisheng (Northern Cape).

The trust is the sole beneficiary of a 3% ordinary shareholding in SIOC held by a Special Purpose Vehicle (SPV) on its behalf. Thanks to the strong performance of Kumba Iron Ore over the past two years the R458 million in preferential shares issued to pay for the trust’s SIOC shareholding may be redeemed as early as 2010, well in advance of the original projections, said Chris Griffith, Chief Executive of Kumba, at the launch. “This will free up an estimated more than R100 million per annum for community development projects.”

He said that of the dividends paid to date, R196 million was used to redeem the preferential shares. He presented the trust with a cheque for the remaining R15 million. This includes R5 million for projects already initiated since the establishment of the Trust.

Connie Molusi, Chairperson of the Board of Trustees of the “Super Trust” said that the mines’ neighbouring communities were the main beneficiaries of the trust. Five independent community organisations operating in these areas have been identified as beneficiary trusts for channelling funds and resources to these communities:

The Gamagara Development Forum was the beneficiary trust for the communities around Sishen mine, including Olifantshoek, Dingleton, Sishen, Mapoteng and Deben. The Tsantsabane Development Forum would service Postmasburg and its surrounding areas; while the Kgalagadi Poverty Node Charitable Trust would service Kuruman and the surrounding rural areas; and the Thabazimbi Development Forum the communities around the Thabazimbi mine. The Maphalane Trust for the Disabled People was the fifth beneficiary trust. While it was based in Kimberly, it operated in the whole of the Northern Cape, Mr Molusi said.

He emphasised that the major portion of the dividends was currently used to service the debt for the initial purchase of the SIOC shares, while the remaining balance was used to fund the operation and projects of the “Super Trust” and its five beneficiary trusts. Both the Gamagara and Kgalagadi beneficiary trusts were allocated 30% each of the available funds, while the Tsantsabane and Thabazimbi beneficiary trusts were allocated 15% each, and the Maphalane beneficiary trust the remaining 10%.

Ms Peters said that the launch of the trust was a milestone event in the history of Kumba and the Sishen Iron Ore Company (SIOC), as well as the Northern Cape and Limpopo provinces. “This initiative is bound to impact greatly on the development of the mentioned areas. More importantly, however, it is will touch the lives of thousands of our people and create a better tomorrow for them.”

She congratulated Kumba on its decision to make the host communities of its mines, co-owners of the company through the establishment of the “Super Trust”. “This is true empowerment where it is needed the most… at grassroots level.”