Why BHP Billiton is reluctant to invest in South Africa's mining sector
The South African government strongly opposes BHP's planned takeover of Anglo American
FILE: Minister of Mineral Resources and Energy Gwede Mantashe. Picture: Nthakoana Ngatane/EWN.
Bruce Whitfield speaks to Dr. Azar Jammine, director and chief economist at Ecomometrix.
Mineral Resources and Energy minister Gwede Mantashe says government would block BHP Billiton's proposed takeover of Anglo American.
Anglo American mines diamonds, Platinum Group Metals (PGM) and iron ore in South Africa.
Recent media reports suggested that BHP were proposing a takeover of Anglo American, which many analysts deem as a sign of reluctance to invest in the country.
But government has dismissed this notion, saying many foreign investors continue to do business with South Africa.
Speaking to the media in Pretoria on Monday, Presidency spokesperson Vincent Magwenya eluded to the the SA Investment Conference which, in R1.5 trillion in investment pledges were made towards business projects in the country.
Speaking to Bruce Whitfield on The Money Show, Dr. Azar Jammine, director and chief economist at Ecomometrix says BHP probably seems South Africa's mining sector as having lost its luster in recent times.
"Mining was the bedrock of the country over many years, and yes we have exploited a lot of minerals and geologically we have exploited an left very little behind than what we would've liked to...bu there's still enormous potential."
- Dr. Azar Jammine, director and chief economist - Ecomometrix.
"The problem is, the country has really lost its way in terms of managing this mining sector in a manner that could make the most of the opportunities available."
- Dr. Azar Jammine, director and chief economist - Ecomometrix
"...especially in the first decade of the 21st century, when there was a massive commodities price boom, South Africa really missed out on that, due to lot of own-goals by the government itself."
- Dr. Azar Jammine, director and chief economist - Ecomometrix
"The country has shot itself in the foot in many respects, ands this has formed part of the de-industrialisation of the country over the past quarter century."
- Dr. Azar Jammine, director and chief economist - Ecomometrix
Scroll to the top to listen to the interview.