Race Quotas Wreak Havoc on South Africa’s Mining Industry

More evidence that moonbattery is not good for business:

South African regulators unveiled a new mining charter to force companies to give more ownership to black shareholders, sparking a selloff across the industry.

Anglo American Plc and Sibanye Gold Ltd. shares tumbled after the Department of Mineral Resources introduced requirements that local companies must ensure 30 percent of their shareholders are black, up from a previous level of 26 percent. Several of South Africa’s biggest mining companies may have to sell new stakes, raising the risk of dilution for existing owners.

Wait until the EFF takes power. They will literally jack it up to 100%.

The new rules “could pull the rug right from under the industry’s feet,” said Andy Pfaff, chief investment officer of Vanguard Derivatives, a South Africa-based broker. “It’s certainly not going to help with attracting foreign investment into South Africa.”

How nice that there is no more racism in South Africa now that Apartheid is over. Everyone can be judged by the content of their character. Right moonbats?

The charter also introduced new procurement rules, including that 80 percent of mining-services spending go to black-owned companies, as well as management and board representation. At least 50 percent of the executive directors and 60 percent of senior management must be black, with black women making up half of each target.

Dictating that ownership and personnel meet increasingly absurd racial quotas is not conducive to competence. South Africa’s resources will go to waste while people go hungry.

But at least there is no more racism, now that race takes priority over even the basic property rights that are a prerequisite of a functional civilization.

On a tip from ABC of the ANC.