COMPANY COMMENT: Minister’s high horse could trample us all
Zwane says those who opposed the charter — read the chamber — were opposed to the transformation objectives of the government
After the Chamber of Mines laid waste to the third iteration of the Mining Charter and the over-reach of Mineral Resources Minister Mosebenzi Zwane’s powers in drafting the document, the response from Zwane was sadly unsurprising.If there was one company that looked set to benefit from green shoots in mining and agriculture, it was Omnia. At the start of 2017, its shares were trading close to a two-year high of R184 as good rain in the east of SA, a better year under mining’s belt and some semblance of policy stability boded well. But, President Jacob Zuma’s calamitous cabinet shuffle, the protracted legal battle looming over the Mining Charter and the swift disappearance of business confidence are taking their toll on at least two of the industries to which Omnia is exposed: mining and manufacturing. In the case of agriculture, it may have been too much of a good thing. The huge unwind in white and yellow maize prices following SA’s biggest harvest on record means that farmers face...
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