Natural resources giant Anglo American has attacked draft South African government proposals to give black-owned businesses a greater stake in the country's mining industry.

The company said on Friday that parts of the government's draft mining industry charter were "unacceptable."

News of the preliminary proposals, which call for control over all new mining projects to be transferred to black-owned businesses within ten years, helped push Anglo American's shares 9% lower to 854 pence on Friday.

But Anglo said it looked forward to consulting with the South African government over the content of the final draft.

Negotiation

"Having promoted the concept of a Charter for the industry for some time, Anglo American and the industry intend to engage strongly in order to arrive at a Charter that is ... practically feasible, and supportive of ...the overall health of the South African economy," the company said in a statement.

It quoted a Department of Minerals and Energy Affairs spokesman as saying that the draft proposals represented the government's 'first position.'

Anglo American, one of several South African firms to transfer its main stock market listing from Johannesburg to London in recent years, is locked in a dispute with the South African government over controversial new laws which could transfer mining rights to the state.

The company last week appointed former Shell chief Mark Moody-Stuart as its new chairman.