Johannesburg — RICHARDS Bay Minerals, a joint venture between mining giants BHP Billiton and Rio Tinto, yesterday announced the completion of its long-awaited 4,5bn black economic empowerment deal with KwaZulu-Natal consortium Blue Horison as it seeks to boost its chances of gaining new-order mining rights.

RBM, the world's largest titanium producer, has submitted its mining conversion application to the Department of Mineral Resources and it is being assessed.

Companies are expected to fulfil certain empowerment requirements before they can be granted new-order mining rights by the government.

Rio Tinto spokeswoman Jean Chawapiwa-Pama said: "We are glad that the deal has finally been completed even though it took longer than we expected for regulatory authorities to approve it." She said RBM had submitted its application to the department in July and an outcome was expected soon.

According to the deal first announced in July last year, Blue Horison will acquire a 24% equity interest in RBM, while about 1750 permanent employees will hold 2% of the equity through an employee share participation scheme.

BHP and Rio Tinto said this was the largest broad-based black economic empowerment deal in KwaZulu-Natal to date.

Blue Horison is made up of a group of seven separate business consortiums that will be joined by the four communities that surround RBM's activities. Businessman JB Magwaza, who is chairman of Blue Horison, will have a seat on the Richards Bay Minerals board.

"We are all delighted that this transaction is finally completed," Magwaza said yesterday.

"The inclusion of the host communities and the employees of Richards Bay Minerals makes this deal great in its empowerment of the historically disadvantaged people of KwaZulu-Natal," he said.

"We look forward to making a positive contribution in the business of Richards Bay Minerals."

The seven business groups or lead investors in Blue Horison include the Imbewu Consortium, Matasis Investment Holdings, Gade Investments, Sambulo Investments, South African Woman Alliance, Ungoye Investments and the Bingelela Investments Consortium.

Together, they will hold 55% of the equity in Blue Horison.

The four host communities -- which include the Sokhulu, Dube, Mbonambi and Mkhwanazi clans -- will not be required to pay upfront for their stake in Richards Bay Minerals.

The Sokhulu, Dube, Mbonambi and Mkhwanazi communities -- which have a combined population in excess of 140000 people -- will hold the remaining 45% of the equity in Blue Horis on.

The deal will see local communities earn R3m a year in dividends and corporate social investment spending.

The interests of the communities and lead investors will be held through a special-purpose company, BEE Holdco, which was created specifically to hold their interest in Richards Bay Minerals.

RBM will make one-off payments of R17,5m to each community's trust on completion of the transaction.