JSE’s min­ing shares blood­bath

The Star Early Edition - - BUSI­NESS RE­PORT - Di­neo Faku

IN­VESTOR con­fi­dence in the min­ing in­dus­try hit rock bot­tom last week af­ter Min­eral Re­sources Min­is­ter Mosebenzi Zwane gazetted the Broad-based Black So­cio-Eco­nomic Em­pow­er­ment Char­ter for the South African Min­ing and Min­er­als In­dus­try, 2017.

The in­dus­try saw a dras­tic out­flow of cap­i­tal amid a blood­bath on the JSE as the mar­ket di­gested the im­pact of the Min­ing Char­ter, through which the gov­ern­ment aims to trans­form the min­ing in­dus­try.

Zwane said last week that the 2017 Min­ing Char­ter was an in­stru­ment of change and in­tro­duced new def­i­ni­tions, terms and tar­gets.

The mar­ket was not con­vinced the gov­ern­ment was act­ing in good faith and share­hold­ers voted with their feet.

Har­mony Gold de­clined 4.29 per­cent to R22.73 a share, Sibanye Gold dropped 4.3 per­cent to R16.02 a share, Gold Fields was down 4.47 per­cent to R44.83 a share while An­gloGold Ashanti was down 4.66 per­cent to R140.40 a share.

Im­pala Plat­inum was down 3.37 per­cent to R36.13 a share, Northam Plat­inum de­clined by 2.42 per­cent to R44.40 a share, An­glo Amer­i­can Plat­inum was down 4.4 per­cent to R289.74.

Cham­ber of Mines vi­cepres­i­dent Steve Phiri said many in­vestors raised con­cerns long be­fore the gazetting. “South African in­vestors have also been scep­ti­cal…

“To­day we are see­ing an out­flow of cap­i­tal, we are bat­tling. We do not see growth. The lack of cap­i­tal is about the lack of in­vestor con­fi­dence.”

Peter At­tard Mon­talto of No­mura In­ter­na­tional said: “It is not the re­form step that the rat­ings agen­cies were look­ing for.”

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