Profit from the government grab for oil and commodities

Big oil companies and miners are under pressure from tax-hungry governments. But this is creating opportunities for smart investors, says James McKeigue.

Last month, the small town of Rustenburg in South Africa erupted in angry protest. Throughout February, miners had been complaining about pay. But suddenly the protesters turned violent and attacked local mines with axes, burning tyres and rocks. They were joined by neighbouring villagers, who are unhappy with high unemployment and low living standards.

Why did they target the mines? Because while the poverty above ground is all too obvious, beneath the soil the region has vast riches. South Africa is home to the world's greatest mineral wealth worth an estimated $2.5trn at present prices which several local and multinational mining companies are busy extracting. That's what annoys the protestors. They feel that mining corporations are taking natural wealth that belongs to South Africa and not giving back enough in return.

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