(South Africa) Government cautioned on issues around nationalisation

Government has been warned that investors need certainty on issues of mining assets, nationalisation and state involvement in the private sector.

Auditing and advisory firm, Moore Stephens, says government has been ambiguous on these issues and that this hurts its credibility.

Mining specialist at the firm, Olivier Barbeau, says investors expect new Mineral Resources minister, Ngoako Ramathlodi, to allay fears on the labour front, especially over the crippling strike in the platinum sector.

Barbeau adds that the Mineral Resources minister inherits a ministry that historically has had a poor relationship with business.

"I think what business are looking for right now is action. Businesses want to see government getting actively involved in the future of the mining industry. Mining has played a significant role in the growth of this country over the years and going forward should be playing a significant role in terms of revenue for government and generating employment.”

Barbeau says that Mineral Resources is a crucial ministry and from now on, business will adopt a wait and see approach.

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Moore Stephens South Africa

 Olivier Barbeau