South32 uninspired by ‘depressing’ mine scene
Miner has no interest in growth options in SA, apart from Klipspruit, due to policy uncertainty and ‘depressing’ government attitude
Diversified global miner South32 has no interest in investing in growth options in SA outside its Klipspruit extension programme because of the deepening regulatory uncertainty and the "depressing" interaction with the government, says CEO Graham Kerr. South32, a R158bn company, hauled the Department of Mineral Resources to court in August to secure an extension to its mining right at its Klipspruit Colliery after a delay of about two years. The court granted the amendment to the mining right, putting South32 in a position to make the $265m investment decision in the first half of its 2018 financial year. Klipspruit’s life extension is South32’s main capital project. Kerr, who headed the cash-flush assets spun off from BHP Billiton, said that at a time when the country needed fresh investment the uncertain regulatory environment, compounded by the release and subsequent suspension of the third iteration of the Mining Charter (subject to a court battle), and fiscal regime were counti...
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