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South Afica's Government already has a State-owned mining company.
The African Mining, Exploration and Finance Corporation (AEMFC) was revived in 2008.
Although slated to be the vehicle for interests in, especially, strategic energy minerals (which is to say, coal and uranium) it will probably aim to become a champion/funder for empowerment in the sector.
Sipho Dube, director of the SA Mining Development Association (essentially an umbrella for black-owned juniors), has expressed the hope the AMEFC acts as a development partner for mining firms that can’t get conventional financing by coming on board as an equity partner.
However, it’s still uncertain why the AEMFC acquired its dangerous trump card.
In 2008, former Minister of Minerals & Energy Buyelwa Sonjica Gazetted a notice giving the nascent State-owned company exemption from certain environmental obligations when seeking mineral rights – including the need to consult with stakeholders.
If those exemptions are utilised to gain footholds in prospective localities others can’t feasibly access it seems almost unavoidable the company will start its life amid controversy.
However, current Minerals Minister Susan Shabangu recently stressed there’s nothing new about State ownership of mines in SA but that those mines need to be put in the “proper context of professionalism” in order to be viable.
She’s pointed to the longsuffering Alexkor, which in 2008 briefly returned to operating profit before falling victim to the general collapse of the diamond sector.
- Finweek
The African Mining, Exploration and Finance Corporation (AEMFC) was revived in 2008.
Although slated to be the vehicle for interests in, especially, strategic energy minerals (which is to say, coal and uranium) it will probably aim to become a champion/funder for empowerment in the sector.
Sipho Dube, director of the SA Mining Development Association (essentially an umbrella for black-owned juniors), has expressed the hope the AMEFC acts as a development partner for mining firms that can’t get conventional financing by coming on board as an equity partner.
However, it’s still uncertain why the AEMFC acquired its dangerous trump card.
In 2008, former Minister of Minerals & Energy Buyelwa Sonjica Gazetted a notice giving the nascent State-owned company exemption from certain environmental obligations when seeking mineral rights – including the need to consult with stakeholders.
If those exemptions are utilised to gain footholds in prospective localities others can’t feasibly access it seems almost unavoidable the company will start its life amid controversy.
However, current Minerals Minister Susan Shabangu recently stressed there’s nothing new about State ownership of mines in SA but that those mines need to be put in the “proper context of professionalism” in order to be viable.
She’s pointed to the longsuffering Alexkor, which in 2008 briefly returned to operating profit before falling victim to the general collapse of the diamond sector.
- Finweek
