The government on Monday published a draft bill that will give them the power to grab a 25 percent shareholding in mining firms, without paying a cent. This new bill is an addition to the general Indigenisation and Empowerment Bill passed in September this year, which provided for a 51 percent stake in foreign owned firms for locals.
Companies who will bear the brunt of the takeovers include the world's second biggest platinum producer, Impala Platinum (Implats). Anglo Platinum, the world's largest primary producer of platinum is currently developing a mine project near Gweru on the Great Dyke and will also be affected, as will diamond producer Rio Tinto. South Africa's Implats, who are the leading foreign owned firm, insist their structure already conforms to the requirements of the new bill. Their Chief Executive Officer David Brown told Reuter's news agency that they have not yet seen the, 'latest documentation,' and cannot comment until they have seen it.
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