Fin24

Shabangu: Nationalisation bad for mining

2012-09-27 17:01

Johannesburg - Nationalisation would harm the mining industry, Mineral Resources Minister Susan Shabangu told business on Thursday.

"The minister confirmed that nationalisation would be harmful to the mining industry specifically, and to the economy broadly, and that (it) is not a policy consideration," said the SA Chamber of Commerce and Industry (Sacci).

CEO Neren Rau said in a statement, after the minister addressed a Sacci breakfast: "She also confirmed that the state-owned mining entity would compete on an equal platform with the rest of the industry."

The ruling African National Congress has suggested the adoption of a policy that rejects "wholesale nationalisation" in favour of "strategic nationalisation".

This was according to recently released recommendations from its national policy conference in June.

The ANC favoured state intervention in the minerals sector, with a focus on beneficiation or transforming minerals into a higher-value product.

"At the forefront of this intervention should be the strengthening of the recently created state mining company, by consolidating state mining assets into a single institution," the ANC said.

"This state mining company will expand or contract depending on the balance of evidence, including by partnering with the private sector in strategic mining ventures."

According to Rau, Shabangu "confirmed that the state-owned mining entity would compete on an equal platform with the rest of the industry".

The minister said the department of mineral resources would ensure that the fundamentals in the mining sector were right, while pursuing beneficiation, Rau said.

Amendments to the Mineral and Petroleum Resources Development Act were at an advanced stage.

"The purpose of the amendments is to remove ambiguities that create room for multiple interpretations of the law and the streamlining of regulatory requirements for mineral development," Rau said.

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Comments
  • christelle.james.7 - 2012-09-27 17:09

    Nationalisation is on the cards, it is not on the cards, its on the cards, its not on the cards. ANC speaks with forked tongue!

      gordon.turner.37 - 2012-09-27 17:21

      To be fair only the tender whores and BMW communists have been squawking about it. The main body of the ANC has been pretty firm on the matter for 20 years.

      christelle.james.7 - 2012-09-27 17:48

      Gordon, only problem is if those guys move higher in the ranks or are joined by similar minded people. I am just not comfortable - what they say today and tomorrow don't always go hand in hand

      Steven - 2012-09-28 08:29

      I agree with the principle of enriching the masses, but the only way to really achieve this for generations to come is through education. An educated country will never go hungry. Rather let the private sector do their thing, and use taxes to educate the masses.

  • mphela.kelatu - 2012-09-27 17:26

    over my dead body it wont happen as long as i'm still in des world said susan some time ago.. Come on su say it again dammit

  • rbphiri - 2012-09-27 17:27

    Guess who finally woke up from his wet dreams.

  • bongani.nsele.58 - 2012-09-27 17:34

    i am sorry i do not agree with you Minister Shabangu...you can't fear to control your natural resources, please tell us who is going to penalize you for doing what is human nature......

      Rational100 - 2012-09-27 18:32

      Amen!!!....couldn't have said it better. When China seeks to control scarce minerals globally, that translates to "Nationalisation on a global scale" ....South Africa must wake up now and control it's destiny in-house with relying on foreign owners that will "rape the country of its minerals" only to leave us drowning acid water!!! OPEC controls their minerals through cartels so why can't we???.

  • scholesss - 2012-09-27 17:44

    if this happen....i doubt that poor people would benefit..from this...those who are rich will get more rich....poor will remain poor....jusl like capitalism

  • bongani.nsele.58 - 2012-09-27 17:46

    sorry i do not agree with you honourable minister

  • peter.mokoena.31 - 2012-09-27 18:15

    The inability of the government to manage important institution with taxpayers money such as health, education etc, would make it a very bad role player. The rich will get richer and the poor very poor. Until the government operates in an accountable manner\r\nlike the private sector, nationalization will remain that bad.

      Rational100 - 2012-09-27 18:37

      It's possible that ure mixing up issues... Nationalisation policy and holding government accountable to its populance are two different things. Being in control of your destiny will always be better than rely of foreign Boardroom decisions regardless of the time and place.

  • Neal Sing - 2012-09-27 18:47

    Nationalisation has proved to be an International failure.Government should learn from nations where it failed.As long as we juggle this issue we are treading on dangerous waters.Put an end to it and let us rebuild what was destroyed by the mere consideration of this issue-INVESTMENT INTERNATIONAL

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