Minerals law opposed by Exxon, BHP adopted in South Africa


South Africa’s ruling African National Congress has used its parliamentary majority to push through changes to minerals laws that companies such as Exxon Mobil (XOM) and BHP Billiton (BHP) say will hurt investment.

The new law will secure for the state a free 20% stake in all new energy ventures and enable it to buy an unspecified additional share at an "agreed price,” and it enable the mines minister to declare some minerals strategic and force companies processing them to sell some output to local manufacturers.

Rules for energy companies were made more onerous after lawmakers scrapped a 50% cap on the size of the stake the state may demand in new projects, which would have “a chilling effect" on investment, according to a trade association whose members include XOM, BHP, Anadarko (APC) and Total (TOT).

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Comments (6)
  • bakermre
    , contributor
    Comments (379) | Send Message
     
    What are the plans for Gold and Platimum/Palladium exploration projects now?
    For example: Anglo Gold Ashanti: http://bit.ly/1iF05Rm and the Ivanhoe Mines new, World Class game changer developments in Transval, Northwestern Bushveld and Flatreef? Also the huge chromite strikes Ivanhoe has made? All these projects need massive foreign investments immediately to proceed. What Canadian, Japanese, US or European investor is willing to risk any capital in South Africa now? Suddenly these ANC people in Parliament have introduced an Argentinian, Russian and Zimbabwe style of foreign investment solicitation. Expected future results? Nul point, Nada, Niet! Why would the ANC expect anything more? Do they have a Chinese sugar daddy in hiding?
    13 Mar 2014, 11:05 AM Reply Like
  • bakermre
    , contributor
    Comments (379) | Send Message
     
    Please note there is an error in the Anglo Gold Ashanti Technology website. Please ignore the address indicated. Thanks, Bakermre
    13 Mar 2014, 11:13 AM Reply Like
  • charliezap
    , contributor
    Comments (2276) | Send Message
     
    Investment in the mining and resources sector in South Africa has already slowed down, not due to lack of resources. The reasons include the inability of the government to get a restrain the unions and get a grasp on the labor situation, plus the general incompetency of government officials and their tolerance of corruption. The result: economic growth has almost stagnated and unemployment, primarily among the black underclasses, remains at 25%+. Ironically, these people are prime supporters of the ANC government. The outlook for South Africa is not encouraging, and many of the companies founded there or based there, are looking for growth elsewhere. These include Anglo American, Gold Fields, Sasol, and SABMiller.

     

    This latest piece of legislation puts another nail in the coffin.
    13 Mar 2014, 02:05 PM Reply Like
  • Neal T
    , contributor
    Comments (3) | Send Message
     
    What only 20%? Why that's downright free market compared to the US income tax rate on the productivity of the minority of its citizens who pay an income tax.
    13 Mar 2014, 05:14 PM Reply Like
  • User 520498
    , contributor
    Comment (1) | Send Message
     
    If one looks at the period running up to commodity supercyle (2000) until now and compare the investments made in other commodity rich countries, you will notice the foreign investors have left long ago. There is only a small amount of replacement capital spent in SA. I am not aware of any major infrastructure spend by the SA govt/business during this period. There is still hope that Coega will be used for something, the rail capacity has not improved to bring ore from KALAHARI basin, the shishen iron ore line has marginally increased, but when comparing to Aus and Brz, this is insignificant (the resource base may be dissapearing). Platinum, what can we say, there are already strong tensions between bosses, lanour and govt (worse massacre since 1976) - the business/bee parterships here are a model for sa nmining.

     

    Other than to take take take the govt should be focusing on growing the economy, delivering thr enablers...but that sadly is not possible in a gimme gimme culture.
    Term ter
    They really need to look at there strategy, and see how other successful countries do it.

     

    I go back to my theory of Maslow's Heirarchy of needs, the guys maketing these decisions are not mear the top of maslows heirarchy of needs(driving a merceds does not may reach self actualisation and help etc), which results in the view lower down the needs change, this results im shorter term decision which do not denefui
    13 Mar 2014, 11:28 PM Reply Like
  • NuclE
    , contributor
    Comments (100) | Send Message
     
    Having lost assets in Africa in the late 60's and 70's I won't invest there anymore. So now another generation is learning that by experience. People who fail to learn history are doomed to repeat it.
    14 Mar 2014, 04:02 AM Reply Like
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