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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (4419)	6/27/2002 1:03:07 PM
From: ms.smartest.person	Respond to of 39344

The Effects of the New S. African Mining Law By Clif Droke We've received several e-mails expressing concern over the passage of a new law in South Africa that aims at transforming the country's mining industry by giving the government control of mineral rights. The following letter from one of our subscribers aptly sums up the recent concern among investors in the South African mining share market: "I just read that there is a new law just passed that socializes the mining industry in South Africa. Previously mineral rights were privately owned, now they will be owned by the government, licenses will have to be obtained. South Africa's Mineral and Energy Minister said the law was aimed at allowing good quality ore currently in the hands of big mining houses to pass into black hands. How will this affect the ownership of these South African mining stocks in your opinion?" First, a little background on this important issue is necessary. Under the new legislation that was passed on Tuesday, June 25, by South Africa's parliament, mining companies will be able to dig only under government license. The legislation brings South Africa's mining industry in line with the laws of other major mining nations such as Australia and Canada, and therefore is not the big earth-shattering developing that some investors think it is. Another point worth considering is that the South African gold share market in general has already taken this into account and knows in advance what the outcome will be! This is because the "insiders" always know the inside score on important issues like this well in advance of the public. Rest assured that the South African government will not take liberties with the country's largest gold, platinum and chromium producers without consulting with its bread-and-butter in the form of companies like Durban Deep, Harmony, and Gold Fields. If anything, this new law click on link for rest of articlehttp://www.freebuck.com/articles/cdroke/020626cdroke.htm