The listing of global commodities giant, Glencore Xstrata, on the JSE last week represent a positive signal and a boost for South Africa, said the minister mineral resources Susan Shabangu.
Glencore Xstrata floated on the JSE last week becoming the third largest stock on the Johannesburg bourse with market value of about R735bn. Glencore Xstrata market value is bigger than most countries around the world. By way of example Glencore Xstrata’s prevailing market value is bigger than the combined GDPs of Malawi, Zimbabwe, Zambia, Namibia, Lesotho, Botswana, Swaziland and Mozambique.
“Glencore Xstrata’s decision clearly demonstrates confidence in South Africa, its mining laws and the positive investment climate,” said Shabangu.
Shabangu’s statement complements expressions by Glencore CEO Ivan Glasenberg. “Our listing on the JSE is a significant step for Glencore,” said Glasenberg. It not only deepens our relationship with South Africa, it highlights our confidence in Africa as a place to invest. We welcome our new stakeholders and look forward to building long-term mutually beneficial relationships with them.”
This represents the beginning of a reversal of the misguided interpretation of regulatory uncertainty in the mining industry, and we anticipate that it would mark the beginning of more quality inward listings.”
The ministry statement added that since the Mineral and Petroleum Resources Development Act was promulgated in 2004, the country has seen a substantial increase in the number of mining companies, mining operations, jobs created and investment.
“With the further strengthening of the Act, through the Bill that is currently in Parliament, we are confident that the sector will continue to play a key role as the cornerstone of the South African economy,” said Shabangu.