Warn­ing: new laws could crip­ple SA’s min­ing sec­tor

The Star Early Edition - - BUSINESS REPORT - ANA

CHAM­BER of Mines pres­i­dent Mx­olisi Mgojo said on Thurs­day that the min­ing in­dus­try was con­cerned about the new laws con­tained in the Re­viewed Min­ing Char­ter, say­ing these laws might re­sult in cap­i­tal flight from South Africa.

Speak­ing on the side­lines of the cham­ber’s me­dia brief­ing, Mgojo said the new laws were de­signed in a way that they had the po­ten­tial to crip­ple the in­dus­try by driv­ing in­vest­ment away. “There is no cap­i­tal as we speak. Peo­ple are try­ing to raise cap­i­tal and cap­i­tal is get­ting ex­pen­sive.

“Our vice-pres­i­dent is abroad on an in­vestor road­show and he just called us to­day ask­ing what is hap­pen­ing, be­cause in­vestors are ques­tion­ing him,” Mgojo pointed out.

“Cap­i­tal is not go­ing to come. Mines are not go­ing to be de­vel­oped and jobs are go­ing to be lost,” he warned.

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