Xstrata-Anglo merger – SA government concerned

Johannesburg, South Africa — MININGREVIEW.COM — 22 June 2009 – The South African government has shown concern at the news that Swiss-based Xstrata – the fifth largest diversified metals and mining company in the world – is seeking talks with global mining and natural resources giant Anglo American plc – one of the world’s largest mining companies – about a merger of equals to better compete in a consolidating mining sector.

Director general of South Africa’s mines and energy departments Sandile Nogxina, told Bloomberg News from his mobile telephone that the Mines Ministry wanted to meet the chief executive officers of Anglo American Plc and Xstrata Plc to determine the effect a combination of the companies would have on the country.

“It’s likely to change the industry,” Nogxina said in the telephone interview. “The Ministry – which oversees the two departments – is definitely concerned about possible job cuts,” he added.

Bloomberg reports that Nogxina expects to meet Anglo American CEO Cynthia Carroll, the on Thursday this week.