Canaf president David Way said political risk in the country, now in its eighth year of a recession, was increasing, making the planned acquisition unattractive.
The initial agreement with Midas Trust for the acquisition was adjusted after the announcement of the Indigenisation and Empowerment Bill, passed through parliament in Harare last month, Way said in a statement. Â
“After much discussion, we have decided that this acquisition is not in the best interests of our shareholders at this time,” he said. Â
Canaf is the majority holder of Quantum in South Africa, which currently supplies Mittal Steel with approximately 6,000 tonnes of coal per month.
“We will continue to search for new high-potential mining and mining related opportunities in Africa.”
 Rio Tinto Plc recently indicated that it had put on hold plans for $250m of additional investment into expanding Murowa Diamond Mine pending the outcome of agreements with the government that will recognise and reduce the risks to Rio Tinto’s existing and future investments following passage of the proposed law through parliament. – Nokhuthula Kumalo
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