Despite the mounting issues affecting the mining industry in South Africa, from strikes to growing costs, Glencore Xstrata (LON: GLEN) announced Tuesday it will apply to the Johannesburg Stock Exchange for a secondary listing.
Unlike his peers, the company’s chief executive Ivan Glasenberg is not afraid of betting on Africa’s largest economy, which happens to be his mother country.
The natural resources giant, already listed in London and Hong Kong, will join Anglo American (LON:AAL), Gold Fields (NYSE:GFI) and Sasol (NYSE:SSL) in Johannesburg Stock Exchange’s secondary listing.
“Africa is an important and growing market for the group and South Africa has a strong institutional investor base,” said the company in today’s statement.
Glencore Xstrata’s South African projects include the Goedgevonden thermal-coal complex in the Mpumalanga province, the Helena underground chrome mine on the eastern limb of the Bushveld Complex, the Wonderkop ferrochrome plant in the North West Province and the Eland platinum mine near Pretoria.
Glencore Xstrata would be the fourth-largest member of the FTSE/JSE Africa All-Share Index (JALSH) with a market value close to US$69 billion, based on today’s market value and exchange rate.
According to data compiled by Bloomberg, BHP Billiton Plc., British American Tobacco Plc. (BATS) and SABMiller Plc. (SAB) are the top three firms in the index by market value.
The company is meeting next Tuesday in London to explain the benefits of the $46 billion merger with Xstrata to investors.
Image: Ivan Glasenberg receiving the Person of the Year award in March/Flickr Commons.
Comments
Andile
I wish to be part of this company.