Anglo American and Old Mutual have both received a political pat on the back by President Thabo Mbeki for their black economic empowerment initiatives.
In his regular internet column, ANC Today, on Friday, Mbeki said: “On August 4 2005, one of our largest companies, Old Mutual (and its subsidiaries), announced that it had ‘today completed their black economic empowerment ownership plans … New ordinary shares (had therefore) been issued today… (to various new black shareholders)’.
“Two days earlier, on August 2, yet another large company, Anglo American, had announced similar progress related to the fundamental transformation of our country, away from its colonial and apartheid past.
“It said that our Department of Minerals and Energy had granted ‘new-order mining rights’ to its subsidiary, AngloGold Ashanti, in terms of the new legislative regime that restores ownership of the wealth beneath the soil to the people, as stated in the Freedom Charter [the African National Congress’s foundation document].”
Mbeki noted that Anglo American South Africa chief executive Lazarus Zim said: “The granting of these mineral rights represents real progress in terms of the South African government’s desire to achieve certainty for all stakeholders and demonstrates its commitment to broaden the participation by all of South Africa’s people in the mainstream of our country’s economic life.”
He also quoted Anglo American plc chief executive Tony Trahar as saying: “This represents a significant step forward for Anglo American in terms of our progress towards converting old-order mineral rights to new-order mining rights. We are greatly encouraged by this positive outcome which reflects the open and constructive dialogue between Anglo American’s mining businesses and the South African government.”
Mbeki — who last year rebuked Trahar for saying that there was still political risk in South Africa — added that the country has taken the decision to realise the goal for a better life for all.
“This means that we must achieve the sustained higher rates of growth for which our movement and the expanded Cabinet lekgotla [meeting] called.
“It also means that our endeavours must result in the reduction of social disparities in our country, and the fostering of greater social cohesion, paving the way for further — and sustainable — social and economic progress.”
Trahar was reported in the Financial Times in 2004 as saying that there was still an element of political risk associated with doing business in South Africa. — I-Net Bridge