Fin24

Shabangu: Nationalisation not viable

2012-02-07 10:54

Cape Town - The ANC will not nationalise mines as it is not viable for South Africa, Mineral Resources Minister Susan Shabangu said on Tuesday.

"I welcome the fact that the report of the ANC's task team on nationalisation has reinforced the [African National Congress's] earlier decisions that nationalisation is not a viable policy for South Africa," she said at the Mining Indaba in Cape Town.

"The ANC will adopt a policy position on this issue that is in the best interests of South Africa."

Shabangu blamed the mining sector for creating the debate about nationalisation by not implementing provisions of the Mining Charter and the Mineral and Petroleum Resources Development Act.

She said this was because of, among others, the practice of fronting, where companies circumvented the Broad-Based Black Economic Empowerment Act.

She said the nationalisation task team's finding was not a surprise.

"It demonstrates the consistent but pragmatic policy that has guided the ANC over many decades, including the period of the adoption of the Freedom Charter in 1955 and, even more recently, the period after 1994."

On Monday, Minister in the Presidency Trevor Manuel told Mining Indaba delegates that the industry needed policy-certainty.

"The mining sector is so fundamentally important as a platform to construct the [upliftment] transition that we can't be able to take this idea of nationalisation forward," he said.

"If some doomsayer comes along and generates another lie [about nationalisation], don't believe them."

The government would rather look to partnerships with the private sector to uplift the sector through education, improved working conditions and more rights, he said.

Comments
  • Ben - 2012-02-07 11:00

    Thank you. It would seem that there is still hope.

      Dean - 2012-02-07 11:10

      How can the minister accuse the mining sector of creating the debate? Everyone knows it was the ANCYL and Malema that started the debate!

      John - 2012-02-07 11:30

      Dean as a matter of fact if these mining companies do not stop their greed and actually create a sustainable model that works mark my words they will be bigger idiots than Malema to come and who knows the next idiots might actually have brains unlike Juju who was just a moron, corporate greed has just got to stop.....this is a world wide issue.....

      Steve - 2012-02-07 11:45

      Why bother nationalising it when you can "super tax" a profitabel private sector.....

      Dean - 2012-02-07 11:55

      The mines are businesses that have to answer to investors and shareholders. They turn a profit which is taxed. The corrupt government misuses and abuses these funds. Now you want me to believe that its the mines who should do something about poverty. Do me a favour! The mines are there to turn a profit and keep the shareholders happy just like any public company.

      Anthony - 2012-02-07 12:14

      can u believe a single thing these people say --its on ,then its off, then not in my lifetime ,then yada yada yada---u really can believe a thing any ANC official says

      ian.pople.sa - 2012-02-07 14:28

      Not if you listen to what Mantashe said a few minutes ago

      David - 2012-02-07 15:47

      "John-oh I see,the mining sector does not consist of companies whose aim,like other companies,is to create shareholder value--it is there to assist the poor,just like a charity. If you would stop and think,you would realise that if the ANC stops its orgy of destruction and creates an environment whereby mines could expand,they would assist the poor by creating more jobs!!Simple!!!

  • marschoeman - 2012-02-07 11:07

    There is 2 weeks before the outcome is made public. Lots of time for him to shoot himself in the other foot... C'mon Julius... Open that big mouth of yours. I dare you...

  • John - 2012-02-07 11:07

    "Shabangu blamed the mining sector for creating the debate about nationalisation by not implementing provisions of the Mining Charter" Always nice to blame someone else. The only ones I heard sprouting forth were the ANCYL and members of the SACP. Not even the unions supported nationalization. But wait... I'm prepared to bet that it will raise its ugly head again. ".... the practice of fronting, where companies circumvented the Broad-Based Black Economic Empowerment Act." All those involved with fronting happen to be related to the ANC Elite. And the rest is history...

  • justin.pretorius - 2012-02-07 11:08

    They will just increase the taxes for them anyway which will be almost the same. Do not ever believe the regime

  • appietrader - 2012-02-07 11:08

    Blaming the mining sector, minister, is not helpful. Once trust is lost, not so easy to get these investors back, minister Manual should know this by now! Don't try and hold the world ransom with the huge reserves of platinum, you'll find it's going to stay in the ground!! STOP blaming the Mining companies for goverment shortfalls, make it easier and not HARDER for the mining companies to invest or they wil vote with their money, invest ELSEWHERE.

  • mullervince - 2012-02-07 11:42

    Intellegent people knew that 100 years ago.

  • Nigel - 2012-02-07 11:49

    finally sanity prevails, but to blame the mining industry on the irresponsible, reckless flirt with Nationalization is simply mind boggling, it all was the doing of the ANC, no one else, so stop trying shirk responsibility & start taking the blame for you own blunders.

  • Sanegran - 2012-02-07 11:50

    She is right it's not viable but the question is to who the mass population or the few greedy ANC memebers.

  • Clarence - 2012-02-07 11:56

    It is time for mines to benefit everyone in the country, more especially the the communities closer to the mines. We cannot have a situation where only a few people continue to benefit from the resources of the country. Mines should be encouraged to support communities in Education, training and other things and only if they fail to do so should the government step in to force their hand. This should apply to everyone including black owned mines.

      appietrader - 2012-02-07 12:20

      Maybe I am stupid, always believed mining is to take the raw material out of the ground, sell it, make profit and pay tax on the profit? Education, training, housing and services supposely functions of government. Must mining take over government functions as well???????

      Clarence - 2012-02-07 13:51

      Those are Gov functions but all I'm saying is that Mining companies should do something for commonalities in which they mine. They should offer Bursaries, internships and skills training. Government give students mining internships?????????????

      Clarence - 2012-02-07 13:56

      Clarence...i agree. what most of these people forget is that they are ALL south african, white or black. if i am not a shareholder of one of the mining companies, how does the benefication of OUR countries minerals benefit us? Yes mines pay taxes, but so do all other companies in the country...the difference is is that mines are benefitting from a minerals that are beneath all of our feet. i believe that mines should have at least 90% local service supplier content. they should be pushing for mining equipment to be MADE and built in SA, they should be pushing for more smelters in south africa instead on selling OUR minerals to china and then buying them back for 5times the price. that is apart from community and environmental upliftment. or has nobody her of acid mine drainage???

  • elias.tabane - 2012-02-07 11:58

    I dont trust the Gov task teams, what methodologies were used to arrieved @ that conlusion , or is it another prophaganda information to to mislead the masses! an independent task them consisting of memebers of the public as observers needs to be established in order ofr the finding to carry weight...

  • Shirley - 2012-02-07 12:07

    Good news but once again BEE is brought to the forefront. Whys is it always colour related issues and not what is GOOD for South African Citizens across the board!Government has to stop deviding its plans into what will benifit blacks as opposed to building a future for ALL>

  • Vegi - 2012-02-07 12:09

    John I don't know if you are the same John that insults the South African from Australia on a daily basis. But that does not matter now. What matters is that what you are saying now is the very root cause of the Nationalization debate. In essence what people are saying is that these mines do dot help us anyway, let us nationalize them. So you have hit the nail on the head. If the mines were useful to communities in which they operate, no one would be calling for their nationalization. In fact the communities would be against a change of any scheme that was beneficial to them. As you say the corporate greed is to blame. If natural resources are used as a means to accumulate billions or trillions for some without any accompanying social responsibility, it follows that the rest will be impoverished as it is the case all over the world. The meagre taxes (in relation to massive and unjustified profits) that these companies pay are an insult to the common understanding that the natural resources they use to generate the massive wealth do not belong to them.

      Brett - 2012-02-07 12:34

      Do you understand that mines do not only generate profit for their owners, they also produce raw materials like steel, aluminium, platinum, copper etc which are used to manufacture thousands of products necessary for modern life? Do you have any idea of how much tax revenue the mining industry contributes? Do you know the government wasted over 25 billion rand last year? Stating that mines are not usefull to communites just demonstrates how ignorant you are.

  • ditantane.kganakga - 2012-02-07 12:19

    bla bla bla, the ANC opened a debate on nationalisation Suzy, and this is after they received a report on nationalisation enquiry. so if you still think it will not happen your fooling yourself.

      James - 2012-02-07 12:48

      Not in our lifetime!

  • mdy.chauke - 2012-02-07 12:36

    The honourable minister & her party have lost any form of rationale thinking,nationalisation was the only solution to salvage the millions of soul living under severe poverty but instead they continue to sell blacks South African soul @ no price to the so called family investors,after 17 years of failure surely she should have gone for a new form of managing the country's resources unlike stacking with the current mining policy cause it is also against the freedom charter it self"all nation groups shall share in the country's wealth" not only millionaires & family friends of those in power.

      clive.smart - 2012-02-07 12:44

      And by nationalization every one will share? The fat cat gray train won't take it all? Just moving from one greedy set of owners to a even more greedy set in power, can't you idiots see this?

  • Brad.Kopping - 2012-02-07 15:02

    oh yes because striking is FAR MORE IMPORTANT than education.

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