Presidency denies SA business environment hostile amid BHP bid for Anglo American
The multi-billion rand proposal by BHP has turned controversial when it emerged that part of the company’s conditions would see South Africa locked out.
Vincent Magwenya, spokesperson to President Cyril Ramaphosa, briefs the media on 15 March 2024 on the President’s upcoming public engagements, and responding to media questions on current matters of public interest at the Union Buildings in Pretoria. Picture: GCIS
JOHANNESBURG - The Presidency has hit back at claims that South Africa’s business environment is hostile as government tries to do damage control in the mining industry.
This was after the world’s biggest mining firm, BHP, set its sights on a takeover at rival miner, Anglo American.
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But the multi-billion rand proposal by BHP turned controversial when it emerged that part of the company’s conditions would see South Africa locked out.
Australian miner BHP plans to exclude shares in Anglo’s Kumba Iron Ore and its Amplats platinum businesses to reduce its exposure to the South African market.
Poor mining policies, made worse by crime and corruption, unhappy mining communities, rail collapse, and an unstable electricity supply, are among BHP’s reasons to cut ties with South Africa.
Aside from the implications for operations in the country, there are fears the move could also spook investors.
But presidential spokesperson, Vincent Magwenya, said BHP’s commercial approach was not a vote of no confidence on South Africa.
"Some of the issues being cited are in the process of being resolved."
Magwenya said the government and the business sector had made ground to reverse the economic downturn and rebuild confidence in the country.