Loading ...South Africa just hiked black ownership rules, miners getting crushed
Mining companies operating in South Africa, including Anglo American (LON:AAL) and Sibanye Gold (JSE:SGL) (NYSE:SBGL), saw their stock collapse Thursday after the country’s goverment increased the minimum black ownership requirement for local mines and set a 12-month deadline for them to comply with the new rules.
Under the revised version of the country’s Mining Charter, companies now have to raise their black-owned stakes to 30%, from the previous 26%, to ensure more proceeds from the country’s natural resources flow to the black majority, Mineral Resources Minister Mosebenzi Zwane said, FT.com reported.
Sibanye, South Africa’s largest gold producer, dropped 7.4% at 1:00PM in Johannesburg and it was 2.65% down in New York at 10:00AM ET, while AngloGold Ashanti (NYSE:AU) was 2.80% in New York at 10:04AM.
South Africa just hiked black ownership rules, miners getting crushed