Talk of Nationalizing South African Mines Gains Steam

June 29, 2011  |  

(Bloomberg) — South African mine production may drop as foreign investors get “cold feet” following a call from the youth wing of the ruling African National Congress to nationalize the industry, Impala Platinum Holdings Ltd. (IMP) said.  “There is definite worry around this particular topic” among European and U.S. investors, David Brown, chief executive officer of Johannesburg-based Impala, said in a speech in the city yesterday. Impala is the world’s second-largest producer of platinum, accounting for a quarter of global output.  “Investors, the traditional suppliers of risk capital to this industry, are getting cold feet,” Brown, 48, said. “The risk associated with future investment in South African mining has increased considerably as seen from the outside world” because of nationalization and other concerns, he said.

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