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
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
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
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
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.