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Mineral Resources and Energy Minister Gwede Mantashe has expressed antipathy to BHP's proposed takeover of Anglo American, as his previous experience with the global mining giant had been negative.
Mantashe told the Financial Times that South Africa's experience with BHP was "not positive," although he added that he is not expressing an official government position on the matter.
BHP's merger with SA miner Billiton in 2001 "never did much for South Africa", Mantashe told the UK financial publication, noting that the company ultimately divested from the country when it "dumped coal and then created a small company called South32, which is now marginal".
The minister's comments come as BHP has confirmed it has proposed an all-share takeover offer of Anglo American that values it at about R743 billion. The non-binding proposal also envisages unbundling Anglo subsidiaries Anglo American Platinum and Kumba Iron Ore, which are listed on the JSE and have substantial operations in SA.
While Anglo also is exposed to South Africa through the De Beer's Venetia Mine in Limpopo, the US Wall Street Journal quoted people familiar with the matter as saying the miner has been in talks with potential buyers for the diamond business. This was a separate process to that of the BHP offer, the report read, with potential buyers including luxury houses and Gulf sovereign wealth funds.
