Fortune Favours Brave in South Africa's Beleaguered Mining Sector
PR Newswire LONDON, December 17, 2012
LONDON,December 17, 2012/PRNewswire/ --
Now could be a great time to invest inSouth Africa's mining sector, BusinessesForSale.co.za believes.
A wave of strikes, one of which left 34 miners dead, led to a 1.1% year-on-year contraction in factory output up to September.
However, with many investors wary of increasing their exposure to the industry amid rumours that the left-leaning ANC might contemplate nationalisation as a solution to widespread labour unrest, mining stocks in the world's largest producer of chrome, manganese, platinum, vanadium and vermiculite can be secured relatively cheaply.
Andrew Markou, co-founder and CEO ofhttp://BusinessesForSale.co.za, says:
"Investors who heed the Economist's assertion that the nationalisation rumours depressing mining stocks are 'far-fetched' might see the sector's current malaise as the perfect opportunity to secure a slice of one of the world's foremost mining markets.
"A business broker prominent in the sector told BusinessesForSale.co.za that the South African constitution actually proscribes the government from seizing private assets.
"The ongoing labour disputes rightly concern industry watchers, driving investment towards the likes ofZambia and Ghana. However, Africa's wealthiest nation still boasts the most supportive, stable environment for entrepreneurs and investors in the region."
A goldmine dating from 1825 is one of the mining opportunities currently advertised on BusinessesForSale.co.za. Another advert on the world's largest directory of businesses for sale advertises a number of mines producing coal, gold, diamond, uranium, tin and copper for which prices range from$10m to $3bn. And a "spectacular and profitable quarry" in the Eastern Cape is on the market at R42m as well as a drill-blast rock-breaking business in Gauteng, whose price is available on request.
BusinessesForSale.comis the world's largest website for buying and selling businesses online with more than 56,000 business listings and more than one million unique visitors every month. Such is our expertise in search-technology that we power business classified listings on FT.com, Telegraph.co.uk, MailOnline.co.uk, Reed.co.uk and AMEinfo.com, providing fully managed solutions.