Operating in SA

South Africa is a middle-income, emerging market with an abundant supply of natural resources. The country boasts well-developed financial, legal, communication and transport sectors and a stock exchange that ranks among the 10 largest in the world in market capitalisation terms. Modern infrastructure supports the efficient distribution of goods to major urban centers throughout the region and the recent hosting of the FIFA World Cup in June 2010 led to a sustained, country-wide upgrade to the transport network and an associated construction boom period.

The Mining and Petroleum Resources Development Act of 2002 has had a strong influence on the South African mining industry. The implementation of this act has changed access to mineral resources as the state became the custodian of all unused minerals in the country. Most of the mineral resources that had previously been privately owned have now become available for exploitation, creating opportunities for exploration in South Africa. Apart from the fact that South Africa is a mineral treasure-trove, the availability of mineral resources makes it an ideal country in which to found a mineral exploration and development company.

Another advantage is that, while the South African Exchange Control Regulations have historically been used to control investments by South Africans outside the borders of the country, the current legislation facilitates investment and exploration efforts inside the Rand Monetary Area.

The current market conditions and South African legislative changes have lured many companies into this industry. Since the early 90s a number of BEE companies of varying sizes have entered the market with varying degrees of success, since success is largely dependent on access to skills and capital. Sephaku Holdings is well positioned to make full use of the opportunities in the market, since it has not only sufficient skills and capital, but also a credible BEE profile.