Miners tumble as South Africa escalates black ownership rules

June 15, 2017

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Companies including Anglo American and Sibanye Gold dropped after South Africa increased the minimum black ownership requirement for local mines and set a 12-month deadline for compliance with the new rules. The Department of Mineral Resources will raise the requirement from the current 26% to ensure more proceeds from the country’s natural resources flow to the black majority, Mining Minister Mosebenzi Zwane said on Thursday in Pretoria, the capital. The new minimum applies regardless of whether they have previously sold shares or assets to black investors that later divested.

Category: General