12 °c
London
Thursday, February 2, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

South Africa mine sector on a ‘knife edge’ due to political strife: Sibanye CEO

FurtherAfrica by FurtherAfrica
November 28, 2016
in Africa, Economy, Mining, Natural Resources, South Africa, Trade
Reading Time: 2 mins read
841 54
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

South Africa’s key mining industry is at risk of collapse due to political unrest and labor instability which have negatively impacted investment into the country, the chief executive of the nation’s biggest gold company said on Monday.

Political ructions in Africa’s most industrialized country including scandals surrounding President Jacob Zuma for his alleged connections to the wealthy Gupta family have caused concern among investors, putting credit ratings at risk.

The mining sector, which accounts for about 7 percent of GDP, has opposed the introduction of regulations and laws that could see the powers of the mining minister increase and social capital commitments of companies rise.

“Right now is the worst sentiment I’ve seen from an investment perspective,” Sibanye Gold’s Neal Froneman told Reuters on the sidelines of the Investing in African Mining seminar in London.

“It’s just very clear, we sit on a knife edge as an industry – it could well collapse and that means it’s unlikely that Africa’s potential will be realized because resources will be sterilized.”

The Chamber of Mines, which represents most of the industry, has said it will take the government to court over the 2016 draft of the Mining Charter which requires companies to keep black ownership at 26 percent even if they sell their stake and raises procurement from black-owned companies.

Sibanye Gold CEO Neal Froneman
Sibanye Gold CEO Neal Froneman

The Chamber also complains that the industry that was not consulted in the draft.

The Charter contains regulations meant to redress imbalances of the nation’s past apartheid rule and stipulates rules for white-owned companies to sell stakes to black businesses.

“The government thought that they were the boss of the industry, but they are not. They have the job to regulate,” Froneman said.

In 2014, South Africa’s main platinum producers were hit by a record five-month strike which was narrowly avoided this year.

In addition to labor instability, governance is one of the main issues plaguing investor confidence.

“Investors are dependent on safeguarding their investments through proper governance, if you have questions about a country’s governance and poor corporate governance then investors simply won’t invest,” Froneman said.

Ratings agencies Fitch and Moody’s on Friday kept their ratings on South Africa unchanged but Fitch cut its outlook for the economy to negative, citing political risk and low growth as concerns.

Zuma, who was also told by the Constitutional Court to repay some money related to upgrades to his home this year, now faces a vote of no-confidence from his own party with at least three of his cabinet ministers turning against him.

Source: Reuters

Related

Tags: Chamber of MinescommoditygoldGupta familyJacob ZumaMining Chartermining industryNeal FronemanplatinumSibanye GoldSouth Africastrike南アフリカ南非
ScanSendShare358Tweet224Share63Pin81Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Trade

US multinational plans to invest in fish farming in Angola

by FurtherAfrica
February 2, 2023
Mozambique using Chinese satellites to forecast potential natural disasters
Climate

Mozambique selects insurance company against disasters

by Club of Mozambique
February 2, 2023
Agriculture

Zimbabwe and Belarus sign US$66m deal for tractors

by Farmers Review Africa
February 2, 2023
Operation of bank neutral cash hubs in Nigeria
Economy

Nigeria’s lower house approves extra US$2.2B central bank loans to government

by FurtherAfrica
February 2, 2023
Venture Capital

South African Carry1st mobile games publisher raised US$27M pre-Series B funding

by TechGist Africa
February 1, 2023
Platform Africa 2023
 
Mozambique eVisa
 
MozParks
 

Translate this page

Read the Latest

Trade

US multinational plans to invest in fish farming in Angola

by FurtherAfrica
February 2, 2023
0

US agri-food group "Dagan Ltd" plans to set up a fish farming agribusiness complex in Angola by 2024, with an...

Read more
Mozambique using Chinese satellites to forecast potential natural disasters

Mozambique selects insurance company against disasters

February 2, 2023

Zimbabwe and Belarus sign US$66m deal for tractors

February 2, 2023
Operation of bank neutral cash hubs in Nigeria

Nigeria’s lower house approves extra US$2.2B central bank loans to government

February 2, 2023

South African Carry1st mobile games publisher raised US$27M pre-Series B funding

February 1, 2023

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 99,736 other subscribers.
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
 

Loading Comments...