Opposition to the loan stems from that trail of ownership leading back to South Africa. Because the government of that country has instituted a policy of racism, known as apartheid, Canadians who believe in equality are wary of any connection with South Africa. And rightfully so.
But this particular connection is tenuous at best. This is a loan that would see Minorco take over a London-based firm, Consolidated Gold Fields. Consolidated Gold Fields, while it has substantial gold-mining interests in South Africa, earns most of its money from operations in the United Kingdom and North America.
In fact, the Canadian bank has a policy for dealing with South Africa that dates back 10 years. It does not make loans to the South African government or its agencies or to private sector companies based in South Africa. That is a reasonable policy, one that the Canadian government only caught up with in 1986.
The point of curtailing dealings with South Africa is not to cause hardship for Canadian banks or companies that have indirect links with South Africa. It is to make South Africa aware of how repugnant Canadians feel about apartheid. Denying this loan would not further that cause.
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