BHP Group, an Australian mining giant, is set to invest in South Africa’s economy as part of its bid to acquire Anglo American for 38.6 billion pounds ($49.3 billion). Anglo American, a company founded in South Africa over a century ago, is one of the country’s major employers.
Anglo American, headquartered in London, has recently rejected BHP’s offer due to concerns about its complex structure. BHP’s proposal includes spinning off two South African units- Anglo American Platinum and Kumba Iron Ore, to focus on copper and other products that are expected to benefit from a shift towards green energy.
In response, BHP has stated that the independence of Anglo Platinum and Kumba Iron would be beneficial for the South African government and economy. The company has also committed to investing in South Africa and supporting charitable projects there.
BHP aims to ensure that the benefits of mining in South Africa are shared with a wider range of stakeholders through its proposal. As South Africa went to the polls in a critical election, where issues like high unemployment, inequality, and poverty among the Black majority are at the forefront, BHP’s investment plans have taken on added significance.
If the takeover proceeds, BHP has promised to maintain current employment levels at Anglo American’s Johannesburg office, continue funding charitable projects in South Africa, list its shares on the Johannesburg Stock Exchange, and establish a mining center of excellence to support research and development in the country’s mining industry.
