Mining land expropriation

South Africa’s economy was built on strong mining activity which has declined in recent years. REUTERS/Siphiwe Sibeko

Land expropriation: Mining giants indicate they are behind the plans

Anglo American – founded by Ernest Oppenheimer – look set to give their support to land expropriation without compensation

Mining land expropriation

South Africa’s economy was built on strong mining activity which has declined in recent years. REUTERS/Siphiwe Sibeko

Despite a whole heap of uncertainty and debate around land expropriation proposals, mining company Anglo American seem ready to support the government on their path to reform.

Speaking to Mining Weekly, CEO of the company Mark Cutifani revealed his company are ready to engage in a “positive manner” when it comes to reform, expressing some upbeat views in relation to the land question:

“The drive to boost investment could be enhanced if government clearly articulates what excellence looks like on the land issue.”

“We want to know, what does the end game look like in terms of diversifying land ownership and ensuring land productivity? Answering this question will help investors understand how their investments might be affected and how they can help South Africa achieve the desired outcome.”

“We as a company will do everything we can to be a positive participant in those negotiations and conversations and we’ll say a little bit more in the next few weeks on things that we can do”

Mark Cutifani

Mining giants set to back land expropriation

Anglo American are the world’s largest producers of platinum, and were founded by Ernest Oppenheimer. They have become the lynchpin of mining operations in South Africa, and any public backing they decide to give Cyril Ramaphosa and his land expropriation blueprints will be a real coup for the ANC.

However, not everyone is on board with plans to amend the constitution in order to allow a non-compensatory model of expropriation. On Thursday, AfriForum took a legal challenge to the Western Cape High Court, seeking an interdict on the constutional changes.

How land expropriation is said to benefit South Africa

Cutifani also made it clear that land restitution “must promote greater investment for economic growth”. Ramaphosa has frequently told those keeping a keen ear on developments that expropriation will help “unlock the potential” of an exclusive economy.

Saying land redistribution would be a “Garden of Eden” for the country, Ramaphosa believes an equal settling of property will create more jobs and alleviate thousands from poverty. Granted, these are his best lines reserved for investor roadshows and international leaders, but its a message that seems to be winning round a few of the big guns.