What Trump in the White House means for the South African mining industry (Mining Review Africa – November 10, 2016)


The election of Trump into presidency may not have positive implications for South Africa’s already-struggling mining industry says Hogan Lovells. America woke up on the morning of 9 November 2016 to the reality that Donald Trump will be its next President.

In the wake of this, world markets instantaneously reflected the uncertainty that surrounds Trump’s economic and geopolitical views. Most world currencies, including the Rand, weakened over-night writes Wessel Badenhorst , Partner at Hogan Lovells.

In the run-up to what will in living memory probably be regarded as the most controversial and personal election campaign in the history of election campaigns, many things have been said. Some in jest, others seriously.

What seems to be clear from Trump’s campaign is that his presidential administration will focus on America. President Elect Trump vowed to investigate trade treaties and uncover trade violations. He may instruct the US Treasury Department to label China as a currency manipulator and one would expect a tighter look at China’s investment practices.

Could it be that Trump would insist that the FBI enforce the foreign corrupt practices act with more vigour? All this leads to uncertainty. And markets dislike uncertainty. Mining is by its very nature a long term investment endeavour that takes decades to mature.

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