Anglo American may dump Kumba
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Anglo American has threatened to sell its stake in Kumba Resources and play no role in the consolidation of SA's iron ore if it does not get Competition Tribunal approval to build its stake in Kumba up to 49%.
At the fourth day of a Competition Tribunal hearing yesterday, Anglo CE Tony Trahar said that he did not think it would be appropriate for Anglo to "have a full commitment to Kumba" if Anglo did not hold a 49% stake.
Trahar said it was Anglo's policy to hold significant interests in its assets as investors in global mining companies made largescale, long-term investments where they had control over the direction of that investment.
The Industrial Development Corporation (IDC), which has a 14% stake in Kumba, is contesting Anglo's plans to build up its stake in Kumba and is advocating that Anglo remain a minority shareholder. IDC CEO Khaya Ngqula has his own vision of how consolidation of SA's iron ore reserves should take place, proposing empowerment stakes in two companies that would be developed in Northern Cape.
He also wants to see the creation of an empowerment basemetal firm and an empowerment gold company formed from Anglovaal Mining's gold assets.
Trahar has said he has the backing of President Thabo Mbeki and Trade and Industry Minister Alec Erwin for Anglo to become a key shareholder in Kumba. Asked to assume that a tribunal decision would not back Anglo taking a 49% stake, Trahar said this would imply a change in government's empowerment strategy. "This would be a very unfortunate development. The policy has been endorsed by government. If it implies that the empowerment strategy should be driven by the IDC government ought to announce that."
Business Day
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