The winds of change have had a significant impact on the politics and economics of South Africa, a nation known as much for deep gold mines as for its abundance of varied mineral wealth.
Large mining house Anglo American, attempting to make its presence more noticeable on the international scene, has staged a 5-city investment community tour, including a stop in Toronto where a press conference was included on the agenda.
Among the Anglo American executives taking part in the tour were Chairman J.O. Thompson, deputy chairmen Nicholas Oppenheimer and Peter Gush, and Executive Director Clement Sunter.
“We’re in the long-term wealth creation game,” said Thompson. Anglo American’s mining interests extend from diamonds through its De Beers holdings, to gold, base metals and industrial minerals around the globe through Minorco.
Other interests include steel and vanadium, pulp and paper, chemicals and certain bulk commodities such as sugar. It also has interests in industry and commerce, and financial services and property.
In 1994, gold, diamonds, coal, platinum, base metals and other types of mining accounted for about 48% of Anglo’s investment earnings. As a group, the Anglo companies form the top gold producer in the world. Anglo’s Rustenburg Platinum is the world’s major producer of platinum. And De Beers, through its corporate holdings, controls 80% of the world diamond market.
For the 6-month period ended Sept. 30 (the company’s year-end is March 31), Anglo posted (interim results) a rise in net earnings of 18% (or 14% in U.S. dollars) — an improvement attributed mainly to mining finance and gold investments, and to industrial interests at home.
In addition to changes on the political scene following the election of Nelson Mandela and his National Unity government, South Africa has had to pull itself out of its longest recession this century. Thompson gives full marks to the private investment sector for the upswing in the economy, and to the influx of new foreign investment in the country.
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