[miningmx.com] – STATE-owned company, Alexkor, is to diversify into coal mining as it believed the prospects for diamond production were diminishing in South Africa, said BDLive citing a statement from the public enterprises department.
The online publication also said the another state-owned company, the African Exploration, Mining and Finance Corporation (AEMFC) had dedicated itself to coal mining which would therefore create confusion.
“It looks as if several different departments are going into business on their own,” Democratic Alliance mining spokesman James Lorimer told BDLive. “I think this is a confusion and I cannot see it ending well,” he said.
Webber Wentzel partner Peter Leon said: “This really does not make economic sense or seem to be an efficient allocation of economic resources.”
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