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Mining document to be discussed
29/07/2002 22:59 - (SA)
Jan de Lange
Johannesburg - Minerals and Energy Minister Phumzile Mlambo-Ngcuka meets "all role players in the mining industry" on Tuesday to set out the government's views on the controversial draft manifesto for the
mining industry.
The draft manifesto, which proposes that 51% of all new mining projects must be owned by black entrepreneurs within 10 years, was leaked to
internet news service Miningweb last week shortly after the minister distributed it to mining companies, the Chamber of Mines and other role players in the industry.
Tuesday's action is an effort to restore confidence in the mining industry and to repair the damage caused to investor confidence by rumours. Mining
company share prices have already fallen sharply since the document was leaked on Friday.
The JSE Securities Exchange South Africa gold mining index fell by 3.93% to 2 196.9 points on Monday, following a sharp 11.7% tumble on
Friday.
The shares which suffered the most on Monday included Anglo American, which fell back by 5.07% to R129.75, after falling more than 10% on
Friday. Afrikander Lease declined by 9.52% to R4.18, and Harmony by 3.28% to R112.12. Durban Roodepoort Deep went down 11.85% to R23.20.
At least part of the fall can also be attributed to the weaker gold price, although gold managed to maintain a price level above $300 an ounce on
Monday. The London fixing on Monday afternoon was $303.05 an ounce.
Mlambo-Ngcuka's spokesperson Kanya Gjuke lashed out on Monday against whoever had leaked the document in its draft form. The document is an
effort by the government to reach unanimity in the industry following the ill feeling caused by the Minerals Act a month ago, but it immediately drew sharp opposition from Anglo American. Anglo said on Friday it was committed to reaching agreement on a manifesto which "has been
thoroughly considered and is practical".
All officials in the department have been instructed not to comment on the manifesto until after Tuesday's meeting.
- Sake
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