Despite Thursday gains, governments and unions pushing mining sector to ‘breaking point’
Gold proved today that it’s far from dead and stock indices around the world were lifted by commodities, but government taxes and worker union demands are creating major obstacles to the sector’s renewed health.
Gold Fields’ CEO Nick Holland claims while the euro zone crisis and gold sell-offs “are partly to blame,” government’s sticky fingers, resource nationalism and ongoing labour unrest are testing the quickly thinning patience of investors, Kevin Crowley reported for Bloomberg.
“Equity investors are frustrated…we’ve spent a lot of their money and given them very little back for it. They keep reminding us of that,” said Holland during a speech in Johannesburg.
Governments in Brazil, Canada, Australia, Namibia and Zimbabwe have all sought a larger share of mining sector profits in recent years, to name a few. Tanzania and Namibia are exploring “super-profit taxes” and mine nationalization is gaining political ground in South Africa as labour, government and the miners do battle to get their hands on the diminishing profits.
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