Mvelaphanda (Mvela) Resources has announced a major deal with a consortium led by former Anglo American South America chief executive, Lazarus Zim.

Mvela has revealed that the consortium, called Afripalm Resources, will pay R1.17 billion to take a 19.3 per cent stake in the mining company.

The move will increase the black economic empowerment (BEE) ownership of Mvela from 23 per cent to 50.5 per cent.

A statement on the agreement said: "It represents the first large scale co-operation between BEE groups in mining, laying the groundwork for further co-operation and consolidation within the sector."

It added: "The transaction signals a maturation of BEE in South Africa, as it represents the first large-scale cooperation between BEE groups in mining, laying the groundwork for further cooperation in the sector."

Mr Zim stepped down as Anglo's South America chief executive earlier this year with the stated intention to become involved in BEE's future in the mining industry.

Ÿ Adfero Ltd