South African mining law issues damage its position as an investment destination

By bne IntelliNews September 12, 2010
SouthAfrican mining law issues damage its position as an investment destination, MartinCreamer, publishing editor of Engineering News and Mining Weekly said. AlthoughCiti Bank has just announced that the country has more than ZAR 18tn in assetsunderground, mining disputes have become common in the country and governmenthandling of two disputed mine right awards has damaged South Africasreputation and raised investor concerns over transparency and governance. AngloAmericans Kumba Iron Ore unit and Longmin said government deprived them ofmining rights in awarding prospecting licences over areas where the two mininggiants operated. Insecurity of tenure and the mine nationalisation debate givethe investment community the jitters. Creamer added that journalists areregularly being offered off-the-record briefings by mining companies that saythey are reversing previous growth plans and looking elsewhere for stability,which would severely increase SA unemployment.

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