Nationalisation of South African mining 'still a threat'
Persistent fears that South Africa could order a forced nationalisation of its huge mining industry are jeopardising vast amounts of potential investment in the country, the ratings agencies Fitch and Standard & Poor's have separately warned.
South Africa's ruling African National Congress (ANC) party debated – and ruled out – the long-mooted nationalisation of its mining industry at the party's policy conference last week.
However, many analysts believe the ruling wasn't decisive and the threat remains that South Africa could become a pariah state in the style of Venezuela and Argentina, where the state has confiscated privately owned natural resource businesses. Any renationalisation could affect the UK-listed mining giants Rio Tinto, BHP Billiton, Xstrata and Anglo American which all have operations in South Africa.
"The failure to put a nail in the coffin of nationalisation and agree on a way forward for the mining sector will continue to harm a sector that has already suffered from a lack of policy clarity," warned Carmen Altenkirch, sovereign director at Fitch Ratings.
Konrad Reuss, Standard & Poor's managing director for South Africa, added: "I see the continuing discussion around nationalisation as something that could be a negative outcome to confidence-sensitive investment. The ANC keeps putting the debate to rest and it keeps coming back."
"From our perspective, South Africa doesn't have the luxury of going through any policy experiments or adventures…there is no room to manoeuvre from a credit rating perspective," Mr Reuss said.
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
- 5 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Isis publicly behead man in Syrian town square for 'insulting Allah' as he screams for help
One spelling error costs Companies House up to £9 million after being sued for ruining business
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Have we reached 'peak food'? Shortages loom as global production rates slow
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...