Data provided by iNet BFA
Loading...
See More

ANC proposes changes to mining sector

Feb 05 2012 11:41 Sapa

Related Articles

ANC study rejects mines grab - report

Zimbabwe mining licence fees set to soar

Limpopo goes it alone on nationalisation

Nationalised RBS to cut more jobs

Zambia aims to up mining contribution to GDP

The outlook for Africa

 

Johannesburg - An ANC report on the mining industry rejects nationalisation of the sector, but nevertheless proposes fundamental changes, City Press reported on Sunday.

Nationalisation would be unaffordable, as the government would need to raise R1 trillion to buy out listed mining companies, according to the report. This exceeds the entire government budget.

The proposals include a 50 percent tax on the sale of mining rights to prevent speculation. A windfall tax of up to 50 percent on super-profits, defined as a return on investment of 22 percent, is also included.

However, the royalty tax would be reduced from four to one percent.

Five ministries -- trade and industry, mineral resources, public enterprises, economic development and science and technology -- would be merged to form a super-ministry in charge of minerals governance.

Platinum, a strategic mineral, would be nationalised via "targeted interventions", while the government would participate in the industry to a much greater extent, the weekly reported.

The proposals were likely to be adopted by the national executive committee of the African National Congress, to reassure investors concerned about the prospect of nationalisation, City Press suggested.

Suspended ANC Youth League leader Julius Malema was the party's most vocal advocate of putting control of the country's mines in government hands. It was adopted as a resolution at the youth league's conference last year. The ANC then commissioned a report into the viability of doing this.

mining industry  |  nationalisation  |  anc
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

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
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Disregard of interest rate impact deplored

A Fin24 user protests what he sees as disregard of the broader impact of increased interest rates on those who cannot yet say "bring it on" with a smile.

 
 

Start saving...

No need to keep up with the Joneses
Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...