Bloemfontein - The ANC has rejected calls to nationalise the
country's mines, but supports a windfall "resource rent" tax on mining
firms, according to a draft policy document seen by Reuters on Wednesday.
"The state must capture an equitable share of mineral
resource rents and deploy them in the interests of long-term economic growth,
development and transformation," the draft of party's economic policies
The "resource rental tax" is effectively a
windfall levy of 50% that will kick in after investors have made a
"reasonable return". As such, it is meant to leave marginal or junior
The ANC also recommended increasing "the supply of coal
at competitive prices with the aim of containing energy costs" but did not
provide any details of how to achieve that end.
At a five-yearly conference in Bloemfontein, the party has been at pains to strike a business-friendly note
after strident calls this year for radical policy shifts to help solve South
Africa's myriad social problems.
The election of millionaire businessman Cyril Ramaphosa as
ANC deputy president has been interpreted as favourable to investment and the
economy, particularly if Ramaphosa is able to push through plans to boost
The ANC also said monetary policy should stick to its
current inflation-targeting regime, squashing calls from the party's union and
communist party allies to broaden the central bank's mandate to include jobs
The party also said the government should consider tax
breaks for employers to hire young job-seekers to tackle the chronic
unemployment that is fuelling unrest among the millions of blacks who have seen
little improvement in their lives since the end of apartheid in 1994.
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