South African mines will *not* be nationalised

[pmbug]

Julius Malema, leader of South Africa's ANC Youth League, has been demanding the nationalisation of the country's mining sector for some time now. But the moderate faction of the ANC has been able to suspend Malema from office for the next five years. After Zimbabwe's President Mugabe decided to nationalise the country's mining industry, fears have been growing among investors that South Africa, the world's largest mining country, could follow Zimbabwe's steps.

During last week's summit of the Canadian-South African Chamber of Business, Bobby Godsell, former CEO of the mining giant AngloGold Ashanti, said that a nationalisation of the South African mining sector was highly improbable. Malema's suspension is relief for many investors, since his plans were hostile to business and a danger to the economic stability of the country. ...

More: http://www.goldmoney.com/gold-resea...h-african-mines-will-not-be-nationalised.html

 

[DSAbug]

This really isn't news and people that were selling based on this political rhetoric need to pay attention to what the charts are telling you. South Africans have been outperforming the rest of the gold space pretty substantially. They have a political elite in South Africa that is in bed with the mining industry. There was no way in hell they were going to nationalize their mines with those people in charge.

In 5 years though...

 

[DoChenRollingBearing]

Foreign national governments don't have to nationalize the mines to greatly benefit even if the price of gold goes very high... FOFOA teaches us that they can TAX them instead, thus taking whatever "fair share" they can get away with and yet still keep the doors open to foreign investors.

For example, if gold goes to $5000, then the foreign national governments tax the gold production $2500 / oz. Gold goes to $55,000 (yes! please do!), they tax them $50,000 / oz.

I assume in the above examples that costs (fuel, etc.) do not go up nearly as much as the gold price does.

 

[Silver_Bug]

This is of course a political decision, and we dont know how ANC internal power struggles will develop in the next 20-30 years. However, the best policy is NOT to nationalise the gold mines as they need foreign investment, expertise and technology transfer if they want to increase or even maintain current gold production.
South Africa experienced a precipitous gold production decline from reduced investment and a nationalisation will only speed this up. South African society needs the shot in the arm from gold exports so in the near term (10 years) it is highly unlikely they will nationalise gold mines. It is likely that as long as gold mines do not lose money, they will not be nationalised.

 

[searcher]

• Plans to move listing to New York from Johannesburg
• Plans to move corporate base to Britain
• Moves subject to a shareholders vote

AngloGold shifts primary listing to US, completing S.Africa exit

Miner AngloGold Ashanti will move its primary listing to New York from the Johannesburg Stock Exchange (JSE) to get access to a larger pool of capital and reduce risk associated with South Africa, it said on Friday.

www.reuters.com

 

[searcher]

Labor Dispute Keeps 540 South African Miners Stuck Underground

(Bloomberg) -- About 540 workers at Gold One International Ltd.’s Modder East mine have been prevented from returning to the surface by labor-union members after a dispute over recognition, according to a company spokesman.Most Read from BloombergUS Push for Release of Hostages May Delay Israeli...

ca.finance.yahoo.com

 

[searcher]

No politics in this one.

JOHANNESBURG, Nov 28 (Reuters) - Impala Platinum (IMPJ.J) on Tuesday temporarily halted operations at its Rustenburg mining complex in South Africa after 11 workers died and 75 were injured in what the CEO said was "the darkest day" in the company's history.

Impala said in a statement that workers were being brought to the surface at the end of their shift on Monday when the conveyance system that carries workers up and down an underground shaft 1,000 meters (3,281 ft) deep started a rapid descent.

Impala Platinum halts some South African mines after 11 workers died

Impala Platinum on Tuesday temporarily halted operations at its Rustenburg mining complex in South Africa after 11 workers died and 75 were injured in what the CEO said was "the darkest day" in the company's history.

www.reuters.com

 

[Goldhedge]

Impala said in a statement that workers were being brought to the surface at the end of their shift on Monday when the conveyance system that carries workers up and down an underground shaft 1,000 meters (3,281 ft) deep started a rapid descent.

It was the sudden stop that scrambled them.

 

[nickndfl]

Did they pick them up with a mop?