Miners Drop as South Africa Escalates Black Ownership Rules
- Government lifts black ownership requirement to 30% from 26%
- Mining companies plan court filing to stop new charter
South Africa plans to introduce rules requiring all local mines be 30 percent black-owned.
Photographer: Nadine Hutton/BloombergThis article is for subscribers only.
South African regulators unveiled a new mining charter to force companies to give more ownership to black shareholders, sparking a selloff across the industry.
Anglo American Plc and Sibanye Gold Ltd. shares tumbled after the Department of Mineral Resources introduced requirements that local companies must ensure 30 percent of their shareholders are black, up from a previous level of 26 percent. Several of South Africa’s biggest mining companies may have to sell new stakes, raising the risk of dilution for existing owners.