Platinum-miner Ridge Mining is investigating the possibility of listing on the JSE Securities Exchange (JSE), following the relaxing of exchange controls, and could list on the bourse in the first half of 2005, Ridge Mining commercial director Francis Johnstone said from London on Wednesday.
Ridge Mining principal projects are the Blue Ridge and Sheba Ridge platinum group metal projects in South Africa. Ridge Mining wholly owns the Blue Ridge project on the eastern limb of the Bushveld, with a feasibility study having been completed, while the Sheba Ridge project is a joint venture with Anglo Platinum.
The company is currently listed on London’s Alternative Investment Market (AIM).
“We are looking very hard at the possibility of listing on the JSE. We have appointed Nedbank to undertake an investigation into listing,” Johnstone said.
“The recent relaxation of exchange controls in South Africa has enabled us to look at tapping into a different pool of capital, when we start developing our mines. A JSE listing will also assist us with black economic empowerment,” he added.
“We could also use the listing to incentivise our employees, down the line, and we could also establish an employee share scheme for our mineworkers,” Johnstone said.
Ridge Mining is currently 8% owned by Mzilikazi Khumalo and his family interests. The Khumalo family has the option to increase its stake in the company to 17% during 2005.
At its Fountain Ridge project, Ridge Mining has formed a joint venture company, Madibeng Platinum, with its partner Mmakau Mining, which is headed by Bridgette Radebe.
Under a shareholders’ agreement, Mmakau has a 30% interest in Madibeng and together with Ridge Mining will create and administer three community employee and local business trusts that, between them, will hold 19% of the equity of Madibeng, once a mine is brought into production.
At present, Ridge Mining has no requirement to raise funds, Johnstone said.
However, to ensure that its shares on the JSE are liquid, Ridge Mining could issue shares when it lists, he added.
Foreign listings became possible after Minister of Finance Trevor Manuel’s announcement in February this year of the South African government’s decision to relax the rules for non-South African registered companies, allowing them to obtain a listing on the JSE.
Earlier on Wednesday, another platinum-miner, Aquarius Platinum, became the JSE’s first foreign listing. — I-Net Bridge