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Yes, the risks have increased - the Sishen Iron Ore/Acerlor Mittal debacle by the DMR is typical of the lack of capacity

I am sure that most of you out there would agree with all of this, but this is preaching to the business converted. I had a stronger view from a present employee of a major platinum mining company about the present landscape. He is on the battleground and this I guess is more real and personal and as such a much more emotive issue for him. Let us call him S, his first initial. This is what he had to say:




    "Yes, the risks have increased - the Sishen Iron Ore/Acerlor Mittal debacle by the DMR is typical of the lack of capacity and knowledge of economics that a resource based economy, dependent on attracting foreign capital, does not need! Never mind the ongoing threats of nationalisation which the current leadership is too weak to dismiss. We are busy killing an industry in this country!"




Something that S feels strongly about clearly. He also pointed out that the mine where he works does employ 80 percent local, contractors are 90 percent local, sundries 70 percent local and stores about 40 percent local and 20 percent internal province. So business has contributed to the lives of the locals no doubt. But I guess if you took off your business cap and slapped on your socialist cap (a little black one with a red star) you would argue that if the state owned all of this, folks would benefit more. In theory chaps, never in practice, as I have often said, the most innovative nations on the planet encourage capitalist pigs. Advancements are made through individual discoveries not by collectives. My view entirely.



Another short sharp response from a fellow with the first initial N (let us be boring and call him that too) was as follows: "In response to your query, as a retired gold mine manager, I think "yes", the risks are higher."



I had a longer conversation with N thereafter and asked him about his views about the decline of Gold Mining in South Africa. I promise to share his views with you, once I have banged them out over the next couple of days with him. You know, the decline in output, rising costs, the dangers of mining here. It is after all an industry that is 124 years old in South Africa. Is that right? If you check on Wiki it will tell you of the History of Johannesburg. Edit that if you want to, just be nice OK.



A fellow, let us call him M, had the following to say: "YES, the risks are up. Not only nationalization as policy, but expropriation by stealth." We had a conversation thereafter and he, like N, referred specifically to the Kumba Iron Ore, Sishen and the out of nowhere Imperial Crown Trading claim to the lapsed Arcelor Mittal rights. Now remember that Arcelor Mittal are looking to buy Imperial Crown Trading, that vote is sometime this week. The easiest money that some folks have ever made, ask the titans of South African business how they made their money. And then lastly a chap called H gave me a simple "yes".




The tribe has spoken, DMR. In this reality exercise we can't vote them out. Because they have ten visible immunity idols.


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