Wednesday, February 03, 2010

Nationalisation of Mines is Not Governmental Policy

'Nationalisation of mines is not govt policy'

CAPE TOWN, SOUTH AFRICA Feb 02 2010 09:53

Nationalisation of South Africa's mines is not government policy, although there is healthy debate on the issue, Mineral Resources Minister Susan Shabangu said on Tuesday.

The African National Congress Youth League reiterated on Monday it would push for the nationalisation of local industries, starting with mines, saying investors afraid of the process were not welcome.

"Nationalisation of mines is not government policy. In my lifetime there will be no nationalisation of mines," Shabangu told a media briefing at a mining conference.

ANC Youth League leader Julius Malema has been one of the most vocal campaigners for a more leftist economic policy under President Jacob Zuma. His demands include that the state should assume majority ownership of mines.

South Africa is the world's biggest producer of platinum and one of the top producers of gold, although the influence of mining on GDP has declined, particularly as gold reserves become exhausted.

But any talk of nationalisation of mines is likely to unnerve investors already worried that Zuma could give in to pressure from labour union and communist allies who helped him to power last year. These allies are demanding a swing to the left, away from existing pro-business policies, as payback. -- Reuters

Source: Mail & Guardian Online
Web Address: http://www.mg.co.za/article/2010-02-02-nationalisation-of-mines-is-not-govt-policy

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