Mining companies hold firm despite South Africa unrest

<p>Moody’s has warned that ongoing pay talks in South Africa may affect mining markets globally.</p>

Mining companies are resolute on the London Stock Exchange despite a warning from Moody's about pay talks in South Africa.

Aggressive wage negotiations are taking place in the African nation and the credit rating agency is worried this may influence mining workers in other nations to seek improved terms.

Moody's told Business Live that such a situation would be "credit-negative for rated miners with exposure to South Africa".

If a credit rating downgrade was introduced off the back of the talks, then this would increase the cost of borrowing for those companies and could see production and cash generation fall.

Despite this negative sentiment, Vedanta is still the highest riser on the FTSE 100 today (September 21st), as it is up 2.56 points as of 11:25 BST.

Indeed, Evraz, an industrial metals and mining firm, is the third highest climber in today's trading, as it has increased by 1.38 points to an index value of 264.40.

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