Cement producer PPC plans to finalise a new broad-based black economic–empowerment (BBBEE) road map in the coming six months in light of an
anticipated five-level drop in its empowerment rating under the South African government’s new scoring system.
It also intends unwinding a BBBEE deal struck in 2008, owing to sustainability problems with the arrangement, which has associated debt of around R2.7-billion that would mature before the end of 2016.
Print Send to Friend 3 0 For 2015, the JSE-listed group retained a level 2 rating under the Department of Trade and Industry’s BBBEE codes of good practice, with level 1 representing the highest ranking that can be secured.
But once the certificate expires in December, PPC is likely to fall to level 7 under the revised rating system.
Speaking to Engineering News Online following the release of its 2015 results, CEO Darryll Castle admitted that it was “a big drop”.
A R1.1-billion second phase BBBEE transaction was concluded in 2012, increasing PPC’s black ownership to 26%, as required by the Mining Charter to enable it to convert its old order mining rights to new order rights.
Castle stressed that PPC had not settled on a specific solution, but that it aimed to improve its rating materially from the position of level 7.
