AngloGold Chairman Warns South Africa on ‘Reckless’ Mining Rules
- Some clauses in new rules scare investors, Pityana says
- Producers are negotiating new mining charter with government
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South Africa risks driving away new investment and crippling its mining sector if “reckless” new rules are implemented, according to AngloGold Ashanti Ltd. Chairman Sipho Pityana.
The latest Mining Charter, which is aimed at sharing the benefits of the country’s mineral wealth more equally among South Africans, doesn’t provide solutions to the industry’s challenges and will make it difficult for companies to buy and sell assets, Pityana said Thursday. Much of South Africa’s mining industry is struggling with rising costs and faltering metal prices that have forced producers to slash thousands of jobs and shrink production.