Malema: Minister must prep mines

Johannesburg - Minerals Minister Susan Shabangu should start preparing the mining sector "psychologically" for nationalisation, ANC Youth League president Julius Malema said on Tuesday.

The league further expected Shabangu to be the first to explain "to our people why we are nationalising", Malema said during an interview on SAfm.

"She should prepare the mining sector psychologically, otherwise the mining sector will be in for a shock... ."

Putting the mines in the state's hands was adopted as a league policy at its policy conference which ended on Sunday.

Shabangu recently dismissed nationalisation as "not an option" and "not current policy".

Malema said nationalisation of mines in Zambia had failed because demand for copper fell, and individuals, not the state, were the beneficiaries. One of the proposals the league suggested was to start with new mining entrepreneurs.

When new mining licences are issued, the state should hold 60% of the ownership, and the mining company 40%.

Mines already operating could hand over the 60% portion to the state and, over time, be paid back through profits.

The ruling ANC has made it clear that mine nationalisation is not a party policy. Policies are formulated at national conferences. The next ANC national conference is in 2012 in Mangaung.
 
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