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Johannesburg - Mining company Alexkor has achieved 93% of its contracted key performance targets, Public Enterprises Minister Malusi Gigaba said on Friday.
"The board has stabled the best governance and management structures, and is in the process of building the prerequisite human capabilities for driving business results," Gigaba said in a statement.
This was despite the board only being in office for seven months.
"Mr Percy Khoza, who assumed office in April 2013 as CEO of Alexkor, has extensive experience in mining," he said.
Gigaba briefed media on Friday on Alexkor's financials.
Management at the Pooling and Sharing Joint Venture (PSJV) with the Richtersveld community had been stabilised.
He said the board had taken decisive steps to unlock value of the PSJV through investment in exploration activities and other efficiency improving initiatives.
The focus on land mining was going to be intensified.
"The PSJV has procured a modular exploration plant worth R50m which is going to be commissioned in the 2013/14 financial year," Gigaba said.
Over 200 jobs were expected to be created through this investment.
"I have requested the board to ensure that the people of the Richtersveld [in the Northern Cape] are favoured in filling job and business opportunities as a result of this ramping up of investment activities in Alexander Bay," he said.
"Our view is that the sustainability of the PSJV is interwoven with the welfare of the beneficiaries of the Richtersveld land claimants."
This year marked the sixth anniversary of the 2007 deed of settlement which gave effect to the land claim by the people of the Richtersveld.
Gigaba said it remained the largest successful land claim in South African history.
"Alexkor and the government have gone a long way in fulfilling their obligations in terms of the deed of settlement."
With regard to the Alexkor Development Foundation (ADF), Gigaba said the Master of the High Court had appointed one of the leading auditing firms to lead an investigation into alleged financial mismanagement by the trustees.
Last year, the public enterprises department sought intervention from the master.
"If any wrongdoing is uncovered, the matter will be referred to the relevant law enforcement agencies for further action."
Gigaba said Alexkor, in its current form, was not sustainable, proceeds from the PSJV were not sufficient to sustain the company, and the state might not have a strong argument on why it should own Alexkor.
The company had three options.
"It is either we opted for business as usual with limited and localised impact; wind down the company, or we framed a new future with a significant and strategic national impact.
"Due to the strategic nature of our interests in the mining sector, the latter was our only option," Gigaba said.
The details of the strategy would be made public once all necessary consultations had been finalised.
