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Mines, rand under ANC spotlight

Durban - The ANC will likely discuss ways to minimise the harm a strong rand causes to exporters, nationalising mines and new rules for regulating the media at closed sessions of the party's policy summit on Tuesday.

President Jacob Zuma tried on Monday to mend strained relations with his trade union allies at the start of the African National Congress's National General Council, one of its most important political events in years where it reviews policies.

In his address to open the meeting, Zuma shied away from putting forward left-leaning policies that would secure his standing among his traditional backers, which include the powerful labour federation Cosatu and the party's Youth League.

Instead, he warned the youth wing to respect senior leaders in what was seen as a public rebuke of the league's outspoken leader Julius Malema.

Analysts do not expect Zuma or the ANC to take any major steps given the divisions in the large and splintered political group and Zuma's consensus-building approach that has led to few policies being implemented.

"We remain divided on the monetary policy instruments, for example, interest rates policy, inflation targeting, exchange controls and the most appropriate policy framework to effectively deal with the challenge of high unemployment," said a copy of the ANC's organisational statement that was obtained by the Sapa news agency.

Zuma said on Monday he wanted to keep the rand stable and competitive.

The currency has gained around 25% against the dollar since the start of last year.

Delegates to the conference said there seems to be agreement on an ANC proposal to set up a media tribunal to punish what it sees as unscrupulous reporting. The proposal has been criticised at home and abroad as a plan to muzzle the press.

"We will have some sort of media tribunal but it will have strong regulatory features. It won't be selected only by political parties," said Jeremy Cronin, a senior ANC adviser who is the deputy secretary general of the South African Communist Party, which is part of the governing alliance.

Zuma, already seen by analysts as an ineffective leader, could leave the meetings in a weakened position if he fails to hold on to the old allies or to win over some new ones.

Zuma needs to fend off rivals in the ANC who are lining up to challenge him at the next party leadership election in 2012. Due to the ANC's electoral dominance, that person is likely to be South Africa's next president.
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