By Gareth van Zyl
Gupta-compromised Mineral Resources Minister Mosebenzi Zwane took a sledgehammer to the SA economy when he drove through a controversial new mining charter earlier this year.
At the final stages of a roadshow in Los Angeles, Zwane’s announcement hit the wires, putting at risk funding for Sibanye Gold’s $2.2bn acquisition of Stillwater Mining, CEO Neal Froneman told Bloomberg.
Sibanye still managed to complete the bond sale but at a cost. It’s now paying coupons of 6.125% and 7.125% on two bonds worth $1.05bn, 50 basis points higher than if Zwane had not published the charter. The extra interest is worth $5.3m a year.
With revelations of Gupta-government corruption growing by the day, Zwane will definitely have to be one of those held to account when the chips finally fall.