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Out of Rand Crisis, Opportunity for World's Costliest Gold Mines

  • President's decision to fire minister brings unexpected gains
  • Rand's collapse to a record hands 15% boost to Harmony shares
Bloomberg business news

S. African Finance Minister Reversal Sees Rand Jump

Updated on

South African President Jacob Zuma is causing turmoil in financial markets and accidentally throwing a lifeline to his country’s struggling gold industry.

Zuma’s decision to fire respected Finance Minister Nhlanhla Nene drove the rand to a record low, instantly reducing labor and other costs in the local currency for mining companies relative to the U.S. dollars they earn by selling gold.