Factors influencing

Abstract

The work described here sets out to investigate the factors influencing the internationalisation of South African mining firms. Strategies used to manage these factors are also investigated. The research follows a positivist paradigm and uses semi-structured interviews to collect data from South African mining firms. More than 80% of South African mining firms by market capitalisation provided responses to the survey. The research revealed that security of tenure, political stability and the availability of infrastructure were the three most important factors influencing the internationalisation of South African mining firms. The most widespread strategies used to manage these factors were political lobbying, bargaining and negotiation. It was revealed that South African mining firms lag their international peers with respect to dealing with investment in infrastructure. The study provides guidance to governments wanting to attract South African mining foreign direct investment by identifying that clear, stable policies and regulations are very important investment criteria for South African mining firms.