message from friend in mining business, who goes to SoAfrica
he doesnt address the financial implications much
he is involved in mine inspections and safety
in December he told me that Saudi oil rigs are the most dangerous on earth, with toxic sulfurous oxide gases
more later on the finances, like diversion of mining capital
/ jw
my question:
Ken,
two weeks ago I read a news report about nationalization of SA mining industry... it was a report from Johannesburg's Congress with new legislation... many new practices will have forced upon the mining firms... like community investment and development...I had warned several investing friends in March & April to beware of SA mine stocks... I thought the risk would be (and might still be) labor disputes and strikes, and expected the SARand to enjoy a bounce back versus the dollar... now it appears both risks happened
could you help me to understand how business will change from your pespective?
a great many changes are in store, each cited without much detail
but from your professional view, what do you see changing?
thanks much
/ jim
his reply:
Hi Jim,
Good question.
Don't see any big changes based on these new regulations. As I see it, these regulations simply place mineral rights where they are most commonly held, with the Government, not with private companies. In this way, Government can spread the benefits of this resource based economy. It's not clear how owners of these mineral rights will be compensated, if at all.
see ya, K |
