Minister of Mineral Resources and Energy Gwede Mantashe; (GCIS/included)
Mineral Resources and Energy Minister Gwede Mantashe has expressed disapproval of BHP's proposed takeover of Anglo American, given his previous negative experience with the global mining giant.
Mr Mantashe told the Financial Times that South Africa's experience with BHP was “not positive”, but added that he was not taking an official government position on the matter.
The 2001 merger between BHP and South African mining company Billion “didn't do much for South Africa,” Mantashe told the British business publication, adding that the company “dumped the coal and then set up a small company called South32. However, he eventually withdrew from the country when he established a small company, now called South32. limit”.
The minister's comments came as BHP confirmed it had proposed an all-share buyout that would value Anglo American at around R743 billion. The non-binding proposal also envisages the separation of Anglo American Platinum and Kumba Iron Ore, two Anglo subsidiaries listed on the JSE and with substantial operations in SA.
Anglo also trades in South Africa through De Vere's Venice mine in Limpopo, and the Wall Street Journal said the miner is in talks with potential buyers for its diamond business, citing people familiar with the matter. I told them that I was doing it. The report said this is a separate process from BHP's proposal and potential buyers include luxury homes and Gulf sovereign wealth funds.
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