OPEN LETTER TO SHAREHOLDERS
by: prozacnasdaq 07/30/02 06:00 am
Msg: 45676 of 45677

AN OPEN LETTER TO SHAREHOLDERS FROM CHAIRMAN AND CEO
MARK WELLESLEY-WOOD REGARDING THE SOUTH AFRICAN
GOVERNMENT’S PROPOSED CHARTER ON BLACK ECONOMIC
EMPOWERMENT IN THE MINING INDUSTRY

Given the unprecedented, adverse reaction of international investors to the
content of the South African Government’s first position on its proposed
charter on black economic empowerment in the mining industry - leaked to
the media last week - I feel I must offer you a few observations.
A South African Government spokesman, confirming the existence of the
document, made it clear that it was a “first position” only; a “proposal” that will
be “discussed and adapted over time”.
Regrettably, these comments passed almost unnoticed in the furore around
the document’s content. The result, I feel most profoundly, was an over-reaction
by the market. I would urge investors to remain calm, to hold their
investments, and to judge all of the role-players by their actions in the weeks
and months that deliberation around this charter is likely to take.
I have no doubts about the appetite of either myself or my South African
mining industry peers - be they majors or juniors, white or black - for robust
reaction to any proposals that would so patently alienate future foreign
investment in their industry.
I think it is important to point out that your company is well positioned with
regard to the new Minerals Act.
Firstly, we have a successful track record of taking on mineral rights that
others have failed to turn into mineable ounces; the Act, by compelling
hoarders to give up mineral rights they won’t mine will offer DRD further
opportunities to do what it does best.
Secondly, in our black empowerment partnership with Khumo Bathong, we
have a model that is absolutely in keeping with the spirit and intent of the new
Act; and, in fact, preceded it by several months.
There is every reason to believe, even at this early stage, that DRD is thus
uniquely positioned to benefit similarly from the Charter, once everyone has
“had their say”, the “middle ground has been reached”, the “water has flowed
under the bridge”, etc.
I would like to think that your company will see through the debating process
less as “Chicken Licken” and more as “Braveheart”.

Quelle: http://www.durbans.com/doc/pru/DRD%20STATEMENT.pdf

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