Anglo shows it’s not chicken: Mantashe should cock an ear

Business

THE BOTTOM LINE

Anglo shows it’s not chicken: Mantashe should cock an ear

Under pressure to ditch SA, Anglo CEO stands firm and commits the company to help with the Mining Charter

Allan Seccombe

Anglo American CEO Mark Cutifani has made important statements that the company remains committed to its investments in South African mining and that it wants to play a constructive role in addressing perceived shortfalls in the Mining Charter.
As the last truly major mining company operating assets in South Africa, and with South32 extricating itself from coal in this country, it’s a message that it would serve the government well to listen to.Anglo has come under pressure from a number of analysts and investors pushing for the company to ditch SA.
Cutifani has in the past said the outcome of the charter talks would determine investment decisions made by the Anglo board. There is clearly deep industry unhappiness with aspects of the new draft charter presented by Mineral Resources Minister Gwede Mantashe – particularly around the 10% free carried shares split between employees and communities on new mining rights, as well as a 1% trickle dividend off operating profit to be paid to empowerment partners.
Mantashe said during a recent public meeting of all stakeholders that the industry, which has stated its fierce opposition to these two particular elements, had yet to present an alternative.
Cutifani’s comments that Anglo and its peers would offer an alternative that would satisfy all parties (including investors) should be seen as a precursor to a concerted effort by mining companies to engage the Department of Mineral Resources before the comment period closes at the end of August.

This article is reserved for Times Select subscribers.
A subscription gives you full digital access to all Times Select content.

Times Select

Already subscribed? Simply sign in below.

Questions or problems?
Email helpdesk@timeslive.co.za or call 0860 52 52 00.

Previous Article