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CEO: Mines uncertainty spooking investors

Cape Town - International investors are wary about South Africa's mines, said Exxaro Resources [JSE:EXX] boss Sipho Nkosi on Wednesday, according to EWN.

The broadcaster reported that Nkosi said investors are hesitant to do business in the country due to restructuring plans in the mining sector.

He said "downsizing and restructuring are frowned upon", EWN stated.

Nkosi also called on the government to take action to allay the fears of investors resulting from the perception of a volatile industry and a state with inconsistent laws.

In May, Business Unity South Africa’s special advisor, Raymond Parsons, said it is imperative for key stakeholders to arrest the decline in domestic and foreign investor confidence.

Parsons said while the country’s economic prospects largely depended on the recovery of the global economy, local aspects were also setting the economy back.

Last week, the government, mining bosses and trade unions identified a road map to tackle eight key problems in the mining sector that needs urgent intervention.

They included workplace relations, workers' indebtedness, and the need for law and order to counter violence and conflict.

Deputy President Kgalema Motlanthe led the negotiations.

Also present at the talks were Finance Minister Pravin Gordhan, Labour Minister Mildred Oliphant, and Mineral Resources Minister Susan Shabangu, State Security Minister Siyabonga Cwele and Police Minister Nathi Mthethwa.

The meeting was also attended by the CEOs of various mining houses and representatives of the Chamber of Mines and the SA Mining Development Association.

The trade unions Uasa, Solidarity, the National Council of Trade Unions, and the Federation of Unions of SA were represented at the meeting, as were the National Union of Mineworkers and the Association of Mineworkers and Construction Union.


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