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Anglo calls off dogs Posted: Thu, 26 Apr 2007 [miningmx.com] -- ANGLO American will not lodge claims of expropriation against the South African government before end-April, the R572bn mining group said in a joint annnouncement with the minerals and energy department (DME). In addition, companies in which Anglo American has a substantial interest - including Exxaro Resources and Anglo Platinum - have also taken this step, Anglo American's acting South African chief executive Philip Baum said. The companies have a market capitalisation of one trillion rand, he said. They are likely to be joined by more South African mining companies including Harmony Gold whose CEO, Bernard Swanepoel, said crucial amendments to the Prescriptive Act, which tells applicants they had three years to lodge an expropriation claim from about 2004, had paved the way. "The original law [Prescriptive Act] was badly written. Now the terminology has been clarified and people still have the right to make a claim," he said in an interview. "But we never thought it was necessary. New order mining rights gives us security for about 25 years," he said. The amendments have been approved by cabinet but are currently being discussed by a parliamentary committee, Swanepoel said. Apart from a European granite group that is pursuing legal action against the DME, the department knows of no other companies that will file claims against the government before the expiry on the old deadline on Monday, DME director general Sandile Nogxina said. The DME is setting up a round of meetings with Anglo Platinum, Anglo Coal, Kumba Iron Ore and Exxaro Resources between now and the end of July. "These dates may yield the result of conversions," Nogxina said. Anglo had made mistakes in the past by not addressing concerns raised by the DME, particularly to social and labour plans, presented by Anglo and its subsidiaries, Baum said. From Anglo American's perspective, the development is a clear signal the UK listed mining firm is taking a more diplomatic route in solving its empowerment strategy. Furthermore, the spirit of compromise suggests the moratorium is the work of Cynthia Carroll, Anglo's newly appointed CEO. It also contrasts heavily with the actions of Luxembourg-based Finstone, the holding company controlling South Africa’s main granite producers Marlin, Kelgran and Red Graniti. It said in February it would sue the government for expropriation of its mineral properties under the Minerals and Petroleum Resources Development Act (MPRDA), promulgated in May 2004. Its legal action brought to a head the debate that has been threatening to boil over since the MPRDA was implemented in May 2004 as to whether mineral rights had been expropriated by the South African government. Click Here to subscribe to our daily newsletter
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