Friday, 18th February 2005 (2894 views)

South Africa's deputy mining minister has announced that the country wants to host a new exchange to trade metals on the continent

Lulu Xingwana revealed this week that the bulk of precious and base metals produced in South Africa have been traded overseas in London and Zurich due to exchange controls and said that, with the relaxation of exchange controls being phased in, it was time to "consider a change of mindset".

The minister said the idea has been floated previously to establish a Pan-European Metals and Minerals Exchange to trade products such as diamonds, gold, platinum, copper and ferro-alloys, Reuters news agency reports.

"No concerted effort has been made yet to study the feasibility of this exciting concept," she said. "However, the New Partnership for African Development (NEPAD) now gives us the conviction to put this opportunity on the table, because for the first time we as Africans can begin to believe that we can make this work."

Ms Xingwana also said Johannesburg could become a trading centre of rough and polished diamonds as the country sought to boost the local jewellery industry.

South Africa is the world's largest producer of gold, platinum and ferrochrome and the government allowed companies from October to invest offshore freely for the first time, also pledging that remaining foreign exchange limits would be lifted. London and Zurich are currently key global centres for trading in gold.

 

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