Following the announcement of the proposed mega merger between South Africa’s largest mining firm Anglo American and the Canadian company Teck, concerns are arising regarding the company’s future plans for its extensive assets in the country.
In an opinion authored by Reginald Letsholo for Business Report, it is argued that “Anglo American is all but leaving South Africa,” while the merger “The company’s latest merger with Canada’s Teck Resources, forming a combined entity “Anglo Teck,” will see the headquarters planted in Vancouver, not Johannesburg. London has been Anglo’s primary listing since it moved its base there in 1999 after 81 years in South Africa, but this new deal “cements its transformation into a truly foreign entity.”
The article continues:
The timing of Anglo American’s merger with Canada’s Teck Resources tells a damning story that South African leaders appear determined to ignore. Just as CEO Duncan Wanblad’s restructuring promises collapse spectacularly with a $3.8 billion coal sale dead, the Woodsmith polyhalite project delayed until 2027, and losses ballooning to $1.9 billion, suddenly Vancouver beckons as the new headquarters. How convenient. (…)
Anglo has pledged to retain a Johannesburg stock listing, a token tie to its roots, but what is the symbolism of a company long synonymous with South Africa’s economic heritage, to be run from continents away?
Only a year ago, after rejecting a takeover bid, Anglo promised shareholders a “streamlined portfolio, accelerated asset sales, and stronger returns.” Instead, it delivered missed deadlines, project delays, and its worst financial performance in years. The Peabody coal deal collapsed after a mine explosion. The flagship Woodsmith project suffered another $1.6 billion write-down. Dividends were slashed from $0.42 to $0.07 per share.
Now, rather than face accountability for these failures in Johannesburg where affected mining communities have borne the costs of mining for generations, Wanblad gets to relocate decision-making power to Canada and call it “transformational”.
For the worst affected mining host communities, the silence from leaders in the public and private sectors and civil society may appear borderline negligent. Where are the tough questions about why South Africa should facilitate the escape of executives who cannot deliver on basic promises? Why are they allowing a company with such poor recent performance to simply relocate its power centre overseas?
