South Africa supports Anglo American

Finance

Publishing Date: 06 Jul 2009 11:13am GMT
Author: Mining Journal

South Africa told Anglo American plc at a meeting between chief executive Cynthia Carroll and mines minister Susan Shabangu that it supports the company after the mine operator rejected a merger proposal from Xstrata plc.

Shabangu "expressed her satisfaction with and support for Anglo American’s continued constructive participation in the South African mining industry and the country’s economy," mines department spokesman Jeremy Michaels said by phone on July 4.

Carroll met Shabangu as part of "routine engagements"
last week, Michaels said.

Anglo American, with more operations in South Africa than any other nation, last month rejected Xstrata’s proposed £22.5 billion (US$36.6 billion) merger.

The combination would be a "big concern" for South Africa, Shabangu said last month, adding the state didn’t want a few companies controlling commodities. The mines department said a few days later it was seeking "more clarity" on the plans.

(Bloomberg, July 6)