ANC 'nationalising' by stealth - DA

2010-10-11 17:03
Cape Town - There is little doubt, according to the Democratic Alliance, that the ANC is trying to advance its agenda of nationalisation by stealth.

The party spokesperson on mining, Hendrik Schmidt, pointed out on Monday that a state-owned mining company, the African Exploration Mining and Finance Corporation (AEMFC), which lay dormant for 63 years,  has been re-invigorated, given a new mission in life and now been given mining and prospecting rights.

Mining Minister Susan Shabangu said in a written answer to a parliamentary question that the company had been awarded one mining right and 27 prospecting rights.

Schmidt said: "This is deeply significant.

"It means the government now runs two state-owned mines: the diamond mine Alexkor and now the AEMFC.

"The creation of a mining company that is owned by the state, given its licences by the state (in a seemingly biased and non-transparent process) and then operates on state business, suggests the worst form of cynicism.

"Such practices should have no place in our economy. Given the track-record of state mines, broadly speaking, it should have no place in our country as a whole either."

Transition

Schmidt said that the company, like Alexkor, had been running at a substantial financial loss (R14m for 2009/10 and R10m for the previous year).

He noted that according to the AEMFC's annual report, its "principal activity" was to "acquire, hold, exploit, develop and engage in mining
operations".

The report said, among other things, the entity's long-term strategy was to "diversify into non strategic mineral resources" (compared to its current mandate, which is to assist Eskom and PetroSA in ensuring a secure supply of feedstock) and to "enter in regional markets (Botswana, Swaziland, Mozambique and Zimbabwe)".

The reply to the parliamentary question "suggests that its transition from an empty shell to a fully second state-owned mine is now near completion," Schmidt said, "and with it, the ANC government's obsession with increasing its control over mining in South Africa."

He added that in the past five years there has been substantial growth in the mining sector in other parts of the world, while South African mines had seen a lack of investment.

"This has partially been a repercussion of this sector of the economy being used as a vehicle to achieve short-sighted, economically misguided, political agendas," he said.

"It seems that what the Act started, the full operation of AEMFC is bringing to completion."

Read more on:    da  |  anc  |  susan shabangu  |  cape town  |  mining
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

Inside News24

 
SPONSORED CONTENT
Investment tips you need to know 2015-01-29 14:07

Ever wondered how to assess your future potential liability? Feroz Basa, Senior Portfolio Manager Old Mutual Investment Group, weighs in on all the investment tips you need to know. WATCH.

/News

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

Valentine’s Day gifts – 14 Feb!

Gifts to spoil him and her. While stocks last. Shop now!

Games on Sale!

Save up to 60% on selected games. While stocks last. Shop now!

Up to 30% off All Textbooks

Save up to 30% off an extensive range of prescribed textbooks for all major universities and FET colleges. Shop Now!

Save up to 40% on outdoor accessories!

Tents, sleeping, day packs and more. While stocks last. Shop now!

30% off fragrances

Get 30% off fragrances for him and her. While stocks last. Shop now!

OLX Free Classifieds [change area]

Horoscopes
Aquarius
Aquarius

Something may come back into focus. You may get a second chance to say what needs to be said. The important focus today is to not...read more

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.