Firms say S Africa mine rights denied

Pretoria: Anglo American Plc and Lonmin Plc, which employs 100,000 people in South Africa, says the government has deprived them of mine rights, threatening investment and job creation in the country’s biggest export industry.

The disputes over the rights, some of which are now in the hands of former government officials, add to investor concern that their investments in South Africa aren’t safe.

The ruling African National Congress is preparing to discuss mine nationalisation at a September congress.

“These could be the first indications of a worrying trend,” said Chris Melville, an analyst at London’s Menas Associates. “The key question is whether the government looks to resolve this uncertainty and close the loopholes or whether we begin to see politically connected individuals and companies systematically exploiting them."