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The article discusses the difficulties facing the South African mining industry which is a result of irresponsible policy making by the government.

Reports on legislation in South Africa that will affect the mining industry. Opposition to the bill from De Beers diamond company and AngloGold; Idea that investors will fear their commercial rights are not safe; Details of the changes proposed by the bill, including private mining rights that will given to the state; Argument that the government is trying to create more competition by opening the way for smaller black-owned firms; Discussion of the government plan for licenses.

Focuses on the efforts in South Africa to provide compensation for blacks after apartheid without infringing property rights. Issue of mining rights and the low number of black-owned firms to mine the country's mineral wealth; Concern of mining firms about a draft mineral-development bill; Mention of government trade-offs between economic growth and restitution.

The article reports that the South African government is looking to create jobs and add value to the country's diamond exports by increasing the local diamond cutting and polishing industry. Most of its stones get exported in rough form, to be cut in Belgium, China, India or Israel. A bill now before parliament includes provisions to set up a state diamond trader and exchange, which would manage imports and exports, buying a share of local production for the local cutting market. An export levy on rough diamonds is also being planned. The export levy would hit diamond mining. The Chamber of Mines of South Africa reckons that the proposed law could create up to 1,000 jobs in cutting and polishing diamonds, but destroy 12,000 in mining them.

The article focuses on Lazarus Zim, an executive at Anglo American mining company with headquarters in Johannesburg, South Africa. Mr Zim has just become the first black boss of Anglo American's South African operations. He reports only to the global boss of Anglo American, his compatriot Tony Trahar. The parent firm, listed both in London and Johannesburg, recently reported a rise in earnings of 59%, or $2.7 billion. Mr Zim sits atop a collection of South African firms--Anglo Gold Ashanti, Anglo Platinum, Anglo Coal and others--that last year contributed over a quarter of Anglo American's worldwide revenue. He is exactly what the company needs--especially in its efforts to patch up ragged relations with the government. Surveys indicate that mining firms believe other African countries have more welcoming laws. Miners also grumble that they are unsure what royalties the South African government will collect in exchange for licences (previously none were charged). Smoother relations will also probably depend on Anglo American making faster progress with "black economic empowerment". This means, in effect, shifting more wealth and power into black hands, something the government is desperate to speed up. Anglo American wants recognition for unbundling itself a decade ago, when it helped to set up black mining firms such as African Rainbow Minerals and Mvelaphanda Resources.