Why Gold Fields is sticking with SA
Despite new Mining Charter sending shock waves through the industry, company says it will retain South Deep
Gold Fields will not dispose of its South Deep mine in SA to focus on its international portfolio of assets, says CEO Nick Holland as a new version of the Mining Charter sends shock waves through the industry. Some analysts have suggested JSE-listed companies with external assets, such as AngloGold Ashanti, Gold Fields and Anglo American, could spin off their South African mines and focus on their offshore assets due to the risks and costs raised by a damaging third version of the charter released in mid-June. The new charter imposes hefty additional charges on the industry and raises black ownership requirements to 30%, from 26%. In a recent note, JP Morgan Cazenove argued that those mining stocks could be rerated if their boards came up with "strategic solutions to reduce their exposure to SA, while minimising value destruction" in the event of the political, legal and social landscape worsening in the country. Gold Fields has spent R29bn on buying and developing South Deep and ne...
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