South Africa mining sector restructuring will hasten

Significance

The threat of future strikes is a blow to government attempts to address investor unease, which it is seeking to do by soothing tensions between unions and miners, and improving clarity regarding the sector's governing legislation.

Impacts

• The recent court ruling against Zuma regarding tax-funded upgrades to his home will strengthen factions urging his resignation.
• Credit rating agency concerns that intra-ANC wrangling will hurt policy implementation could hasten a downgrade to 'junk' status.
• Zimbabwe is likely to pursue stricter HDI ownership requirements than South Africa, driving some investment southwards.
• De Beers' strong performance following a recent 2% diamond price hike will help to improve returns for parent company Anglo American.