By Abdul Rahman Suagibu –
NEW AFRICA DAILY NEWS, Freetown, Sierra Leone- Anglo American CEO, Mark Cutifani pronounced that, there is no scarcity of geological opportunities in South Africa. Therefore mining investment needs political stability and regulation clarity. While encouraged by positive improvements in the political arena, the “parlous state” of public finances remains a challenge according to Cutifani. The Anglo CEO noted that, companies must work with the government to tackle “unresolved issues” in the nation’s mining Charter – which seeks to address inequalities resulting from apartheid.
The multiplier effect of growing the mining industry which currently supports about 4.5 million people could drive a “wholesale economic renewal of South Africa” However Cutifani casts cautioned that; plenty and high grade deposits won’t guarantee investment. “There are many other factors besides mineral endowment those influences where investors decide to put their money, about the security of their investment over time” he said.
Anglo American Platinum CEO Chris Griffith announced that, fundamentals for platinum – group metals will remain good for a “number of years”. The improving market has enable producers to increase their profitable supply and has drawn greater interest in platinum stocks from international investors, he said. The company known as Amplats is studying a number of projects for its “next move of growth, according to the CEO.
The regulatory environment in South Africa has improved, but the government needs to resolve the issue of community disruptions around mines, which is leading to huge looses for producers, Griffith said. Labor disruptions, crime and xenophobia are deterring investors, while policy differences between government and ruling African National Congress are also concern, he said.
For New Africa Daily News Abdul Rahman Suagibu Reports, Africa Correspondent