27 February 2020
Anglo American welcomes new system for capital flows in South Africa
Anglo American welcomes the announcement made by South Africa's Minister of Finance, Tito Mboweni, in the Budget Speech on 26 February 2020, in which he announced a number of measures to facilitate cross-border financial transactions, in support of trade and investment. The annexures to the Budget Review provide additional detail, including a shift from the current policy of exchange controls to a risk-based capital flow management system that is in line with international best practice.
The new system will provide companies in South Africa, including Anglo American, with increased flexibility to manage cash resources to optimal effect. The adoption of a risk-based capital flow management system supports South Africa's economic growth and investment goals and is a further positive step towards building South Africa's attractiveness as a globally competitive investment destination.
Anglo American Chief Executive, Mark Cutifani, commented: 'We are encouraged by the announcement from South Africa's Minister of Finance of this new system for capital flows. We believe in the clear benefits of the government continuing to implement effective policy measures that are supportive of attracting investment to spur the economy for the benefit of all South Africans.
'Mining is a critical driver of economic growth, transformation and development across many communities in South Africa and for the country as a whole. We see considerable opportunity for South Africa to compete more effectively for global investment in its precious natural resources which can then help deliver a more prosperous South Africa. Anglo American's commitment to South Africa stretches back more than 100 years and we will continue to play our role in making South African mining safer, smarter and globally competitive - as both a leading global mining company and one of the largest investors in the country.'
Anglo American notes that, as set out in Annexure E to the Budget Review, certain exchange control conditions previously applicable to it will be aligned to the current foreign direct investment criteria. In terms of the new system for capital flows that will align South Africa's approach with international best practice, Anglo American will engage with the South African Reserve Bank and National Treasury in respect of how it will apply to its business in South Africa.
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Notes to editors:
Anglo American's investment commitment in South Africa
Anglo American has committed to investing $6 billion (c.R72 billion) between 2018 and 2022 on sustaining and extending the lives its mining operations in South Africa.
This commitment includes the more than R30 billion Venetia Underground Project - the largest single investment in South Africa's diamond industry in decades - the Mogalakwena PGMs complex, and Kumba's ongoing development of the Sishen and Kolomela mines. Through this investment commitment, Anglo American is supporting 47,000 jobs at its operations in South Africa while also stimulating the regional economies of Limpopo, North West, Mpumalanga and the Northern Cape, where many of the company's mining operations are located in South Africa.
In addition to the 47,000 people employed directly by the Company in South Africa, Anglo American aims to create five jobs outside the mine for each job at the mine by 2030.
Anglo Americanis a leading global mining company, and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped resources provides the metals and minerals that enable a cleaner, greener, more sustainable world and that meet the fast growing consumer-driven demands of the world's developed and maturing economies. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and mine, process, move and market our products to our customers around the world - safely, responsibly and sustainably.
As a responsible miner - of diamonds (through De Beers), copper, platinum group metals, iron ore, coal and nickel - we are the custodians of what are precious natural resources. We work together with our business partners and diverse stakeholders to unlock the sustainable value that those resources represent for our shareholders, the communities and countries in which we operate, and for society as a whole. Anglo American is re-imagining mining to improve people's lives.
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