Charter scares off more of mining's few stockholders
Sector starved of foreign cash is being banned in investor mandates
Mining stocks are a no-go zone for even more investors after the release of the Mining Charter heightened risk for the sector - and some investment mandates now specifically exclude South Africa's mining industry. Industry commentators said there would be more domestic and foreign investors exiting the mining industry after the value of mining stocks plunged in response to the release of the charter. Adele de Jager, head of mining tax and a director at KPMG, said it was becoming increasingly difficult for investors to invest in an industry with so much uncertainty. In private equity, some have a mandate to stay away from the mining sector "because of risks associated with it", De Jager said.
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