Fin24

Shabangu reassures foreign investors

2012-08-29 07:59

Perth - South Africa's institutions provide protection for foreign investors in the resources sector, Mining Minister Susan Shabangu said on Wednesday, seeking to reassure about the stability of the sector after a recent wave of labour unrest and deadly violence.

Shabangu made the comment on a trip to Australia after clashes between workers and police killed 44 people earlier this month and shut ore output at mines run by Lonmin [JSE:LON], the world's third-largest producer of platinum.

"We urge our investors, incumbent and prospective, to take comfort in the solid foundation set by our constitution, government, legal and civil institutions," Shabangu told a gathering of mining executives and African officials in Perth.

"The president and people of South Africa are determined to isolate bad elements in our society that are seemingly committed to undermine the democratic gains of the country to date," she added.

Platinum miner Lonmin said on Tuesday only 8% of workers had reported for duty at its South African operations as it struggles to restart shafts halted for over two weeks.

Minister Shabangu also said the question of nationalisation in South Africa's mining sector would be put to bed at the end of the year.

The ANC had been expected to rule on a drive to nationalise the country's mines earlier this year.

But the policy still remains unclear although "blanket nationalisation" - a sweeping buyout that would cost the state $132bn - and a windfall tax appear to be off the table.

"That debate will reach its conclusions within the ruling party in 2012," Shabangu said.


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Comments
  • klaas.waarzegger.7 - 2012-08-29 08:36

    Dear Susan. Why only at the end of 2012 and not now, as in today. Or does it have someting to do with Manguang? I am sure all other political parties already know what their policy on this issue is.

      alf.pop - 2012-08-29 09:01

      Why only at the end of 2012? Because in involves taking a decision and ourgovernment has not taken a decision since zipper Zuma took office! They have now been stuffing around with this debate for years, when a simple YES or NO would settle the matter. Auntie Susan's assurance's should make every prospective investor run for the hills!

      terrylee.heuer - 2012-08-29 11:19

      Investors beware keep your eye on the ball and that would be the Unions and the ANCYL do not underestimate them. Nationalisation is on the cards for mining and other businesses and believe me the ANC also want it!!!

  • nicholas.graan - 2012-08-29 08:37

    Saying that nationalisation will be put to bed at the end of the year is hardly reassuring! If it is "not ANC policy" as they are always saying, why then was it not put to bed at the big mining conference a couple of months ago? It is because they still want to debate the issue and placate some of the senior hot heads amongst the ANC ...that is by no means reassuring!

  • simon.stamp.98 - 2012-08-29 08:39

    Foreign investors will only think: is it that bad already!

  • tin.can.501598 - 2012-08-29 08:54

    Minister Shabangu....Mining is a long term investment.Life is short and the youth will one day replace you.Given the current sentiment of the youth I think no-one should believe a word you say on nationalization not happening.

  • sidney.gilroy - 2012-08-29 09:03

    Susan. You will be out of a job by next year this time. Rather you start looking for work in the private sector. Avoid mining. Seems retrenchments and job losses are going to be rampant there...

  • peter.fraser.92754 - 2012-08-29 09:11

    ENJOY YOUR HOLIDAY/TRIP AT THE SAME TIME !!WHY DONT YOU JUST MEET WITH THE VARIOUS COUNTRIES AMBASSADORS RIGHT HERE IN SOUTH AFRICA.WHY DO YOU RUN AWAY >>>WHAT YOU GONNA TELL THEM ABOUT ANCYL;S LATEST GO TO GET THEIR HANDS ON THE MINES ???

  • tshepo.maganedisa - 2012-08-29 09:25

    The minister has yet again failed in her communication, she is only interested in one side of the audience (the investors),i still havent heard her commenting on the Marikana issue nor on other related valid issues miners have against their employers.She hasnt again made a statement regarding the rivaly between the unions, yet again showed signs of indesicive leadership - maybe Julius is right after all regarding mines bosses colluding with Government and Ministers in return for protection.

      harald.voney - 2012-08-29 09:51

      Dude... Your beloved ANC exec and leadership are all involved in the mines, with the Chinese and others... why don't you go ask them? Ramaposa is an investor in Lonmin, he being an ex trade union; and current ANC exec; why is he not helping his workers?? Fattie Zuma, bought Aurora, cleaned it out, stole its assets, didn't pay their workers and left them destitute (to a point where some committed suicide).... and no action has yet to be taken against them!!! The common problem in South Africa is the where ever the ANC is involved, there is corruption, theft and exploitation... Vote for them Again!!

      J.A.Rademan - 2012-08-29 10:16

      Tshepo, Marikana is a result of "culture". A culture of demanding. A culture of manipulating simple but innocent people to your political will. A culture of not acceptign responsibility. A culture of greed. A culture of violence instead of negotiation. A culture of superstition. Marikana is a monument to "culture"

  • DrGonzoSA - 2012-08-29 09:58

    I wouldn't invest a cent in mining in this country. I have recently invested in companies operating in DRC. That says a lot

  • J.A.Rademan - 2012-08-29 10:07

    What a lot of Crap. Control your youth first before making empty statements. The rest of the world are not as gullible as your voters.

  • nketso.kgwadi - 2012-08-29 11:32

    Who r this investors pls do tell and r they leaving the profit here in SA?

      pieter0827006294 - 2012-08-29 16:18

      These investors are the people who giva da money for da factories and mines to be there and makes jobs for miners you see. If they taka da money and leave, da mine di close da doors and tda sign will be at da gate saying "CLOSED". Thats who they are!

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