Impala Platinum has agreed a major new deal with black economic empowerment (BEE) group, the Royal Bafokeng Nation (RBN).

The world's second largest platinum producer has announced that RBN will receive 12.1 billion rand ($1.58 billion) in stock in what is the biggest redistribution of wealth to any BEE group.

"This deal resolves the problem of a potential double royalty that Impala was facing," Patrice Rassou, a portfolio manager at Old Mutual Gold Fund, told Bloomberg.

Impala has revealed that the deal will see the stock being provided in lieu of an existing royalty which the firm decided to scrap after the South African authorities refused to exempt the company from the proposed sales tax on mining companies.

The move will also help to ensure that Impala meets its obligation to transfer at least 26 per cent of its stock to BEE investors by 2014.

Ÿ Adfero Ltd