ANC will talk mining

2010-07-10 11:50

Julius Malema has overcome his first huddle ­towards making mine

nationalisation part of the country’s economic policy by making sure it is part

of the ANC policy conference in September.

If he succeeds to convince the mid-term policy reviewing

conference, the government may be forced to change its stance on nationalisation

and start a process to achieve it.

Malema, the president of the ANC Youth League (ANCYL), said on

Friday that the ruling party would hold seminars to discuss the matter ahead of

its National General Council meeting in Durban, where ANC policies would come

­under members’scrutiny.

Malema said: “The debate is still going on. The ANC is going to

conduct seminars that will debate the matter. It is no longer an ANCYL issue; it

is an ANC ­issue. We will be participating in these seminars as one of the

structures within the ANC.”

ANC spokesperson Jackson Mthembu said the party would hold

discussions in its regions and branches to discuss economic policy.

“There will be serious round-table documents that will look at our

approach to the economy, including the nationalisation of mines.”

In its discussion document on the nationalisation of mines, the

ANCYL is calling for the establishment of a state-owned mining company that can

be used as a springboard to nationalise mines.

It argues that South African mining legislation – the Mineral and

Petroleum Resources Development Act – must be amended to allow the state-owned

mining company to take 60% in new mining operations, with the balance ­going to

private investors.

“The amended act should apply to new mining licences and all those

who seek to renew their licences,” the document reads.

“In order to have a clear regulatory framework on this principle,

the South African government should place a moratorium on the issuing of

­licences until the act has been amended.”

But the National Union of Mineworkers – an affiliate of Cosatu –

wants the state mining ­company to own 31% of new mining investments and private

investors 49%, irrespective of race or gender, while it wants the remaining 20%

to be split equally between workers and ­rural or worker co-operatives.

The union, the biggest organiser in the mining sector, says the

company must be used to bolster state revenue, create jobs and drive industrial

­development through raw material beneficiation.

Indications at this stage are that the state-owned company will be

established by ­consolidating its mining interests through ­mineral rights and

those held mainly through the Industrial Development Corporation and Public

Investment Corporation. Between the two ­institutions, the state has interests

in companies such as diamond producer Alexkor, phosphate miner Foskor, iron ore

producer Kumba, ­petrochemicals group Sasol and ferrochrome producer Merafe

Resources.

Nchakha Moloi, the chairperson of the South African Mining

Development Association, said the organisation was unfazed by the clamour for

the state to play a more influential role in the mining industry, including

owning mines and ­investing in exploration.

“The state must be clear why it wants to establish its own mining

company. The company must have a clear mandate and business plan. It must also

compete on a fair basis with private firms.

“It will not be fair on private investors to spend R200 million on

exploration, only for the state to come in to take 51% in the project. If the

state wants a bigger share in mining projects, it must be prepared to invest in

exploration.”



Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.