South African Mining in Danger

South Africa Mining Could be Disrupted

After the murder of South African politician Eugene Terreblanche, tensions have skyrocketed in the country, generating concern the mining industry could take a huge if things escalate out of control.

Radical senior member of the African National Congress, Julius Malema is making things worse, as he called for all mines owned by foreigners in Africa to be nationalized.

Terreblanche was murdered by being hacked to death by machetes, while a couple of young men were arrested for the murder.

As these events could go either way, there is extreme uncertainty as to the validity of the mining industry in South Africa if violence erupts on such a scale as to interrupt the industry. That could cause commodity prices to rise in response to the supply problems which would result from the upheaval.

Most major mining companies have an interest in South Africa, but it would do more harm to the country itself than even those companies would experience.

Mining minister Susan Shabangu has stated there would be no state takeover of the mining industry "in her lifetime."

While that may be true, Malema thrives in times of chaos like these, and if he continues his rhetoric, there could be extraordinary violence where nobody knows where it could end.

Terreblanche was considered a white supremacist, making the likelihood of extremists on all sides of the issue and events ready to enter into battle.