Anglo American has laid its apartheid-era history to rest after sealing a deal with the South African Government to transfer ownership of some of its assets to black empowerment groups.

The Government had given Anglo, one of the world's largest mining groups, until next year to transfer ownership of 26 per cent of its assets to black communities. Failure to meet that target would have resulted in Anglo losing its mining rights in South Africa, which effectively would have destroyed the company.

Anglo will work in partnership with hundreds of black South Africans and their local communities in running coal, copper and platinum mines across the country. Cynthia Carroll, the chief executive of Anglo, said: “It is very significant that we have achieved this. It has not been easy, but it is important that we play our role in reconciliation in South Africa.”

Anglo, which was founded in 1917 by Sir Ernest Oppenheimer, has been accused of exploiting cheap black labour during the apartheid regime in South Africa. The Government - formed of the African National Congress, which has been in power since the advent of majority rule in 1994 - passed a law in 2002 that will transfer all mining rights back to the State in 2009. The Government said that it would release those rights back to mining companies if the assets were 26 per cent-owned by black economic empowerment (BEE) groups.

Anglo had been accused of dragging its feet on the issue of black empowerment, but Mrs Carroll made it a priority upon her appointment last year. “I made a commitment to get this finished and I have been much more involved in the process,” Mrs Carroll said.

The South African Government said yesterday that Anglo would retain its mining licences, having met the BEE requirements.

The news came as the company released its financial results for 2007. Anglo increased underlying profits by 5.3 per cent to $5.8 billion (£3 billion) last year and revealed that it had a pipeline of new mining projects worth $41 billion. Its total revenue declined 7.7 per cent to $35.5 billion after a programme of divestments. Anglo spun off Mondi, its paper and packaging division, last year and is selling its holding in AngloGold Ashanti. It holds 16.6 per cent and is expected to reduce this to zero after April.

The company has decided to postpone the £3 billion sale of Tarmac, the cement and aggregates business, in the wake of the credit crunch.

Market rumours have continued to link Anglo with a possible bid for, or by, one of its rivals. The mining sector is undergoing a period of consolidation, with BHP Billiton bidding £75 billion for Rio Tinto and Vale bidding about £45billion for Xstrata.

Mrs Carroll said that she continued to look at acquisition opportunities but also emphasised the company's strong organic growth potential. She said: “We also know our market position and we really think there is so much value embedded in the company that there is nobody that can offer us something we don't have.”

Sources suggested that Anglo was likely to wait until its rivals had completed their deals and then would buy assets sold off to meet regulatory requirements.

Anglo said that it was increasing its dividend by 15 per cent to 126 cents per share.

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