SOUTH AFRICA: Youth leader Julius Malema reiterates call for nationalisation of South Africa mines

Record ID: 453796

  • Title: SOUTH AFRICA: Youth leader Julius Malema reiterates call for nationalisation of South Africa mines
  • Date: 9th September 2010
  • Summary: JOHANNESBURG, SOUTH AFRICA (FILE - JUNE 2010) (REUTERS) DRILLING MACHINE MINER OPERATING A DRILLING MACHINE VARIOUS OF MACHINES DRILLING
  • Embargoed: 24th September 2010 13:00
  • Keywords:
  • Location: South Africa
  • Country: South Africa
  • Topics: Industry
  • Reuters ID: LVADVITB1EN71URR7JW4ROKV6ZBE
  • Story Text: ANC Youth League president Julius Malema has accused mining companies of stealing from South African citizens and once again presses the message of nationalization at the Mining Summit.
    ANC Youth League president Julius Malema has accused mining companies of stealing from South Africans and is once again pressing for the nationalization of the mines.
    The outspoken leader of the ruling party's youth wing says the country's economy is still led by apartheid-era ownership structures.
    Speaking at a Mining Summit in Johannesburg, Malema said the mineral wealth of Africa's biggest economy, home to the world's largest reserves of platinum and chrome and one of the top producers of gold should belong to the state.
    Malema added that state owned mines will benefit the country and its people rather than foreign companies or a selected few.
    "State owned companies is not nationalization but is one step forward for nationalization. We are going to establish the state owned mining company and we are going to amend the Minerals Act and proposing that amendment that the ownership of all minerals must be put under the state owned mining company," said Malema.
    While the government said last month that the state-owned company could be formed before the end of this year, the mining minister has repeatedly stated that nationalisation of mines was neither ANC nor government policy.
    Malema said the state-owned company should hold at least 60 percent of South Africa's mineral rights, primarily in strategic minerals such as iron ore and coal, while the remaining 40 percent could be outsourced to foreign investors.
    Charles Roche from Mineral Policy Institute from Australia was invited to speak about taxation as a mineral tool and commented on what Malema proposed.
    "I found that he is very political; it was very interesting and it, the concept of nationalizing mines here does not seem to be controversial. In the first day and half of the conference there seems to be an acceptance that there would be some level of nationalization or at least establish a state owned mines especially for Santago minerals," said Roche.
    Although the influence of mining on gross domestic product has declined, particularly as gold reserves become exhausted, the sector remains one of the country's major employers.
    The debate on nationalisation of mines has been raised by foreign and local investors as an area of concern.
    The government has repeatedly said that it is not its policy to nationalise the country's mines, but there is a faction within the ruling party calling for such a move as a way to address social inequalities that still exist 16 years into democracy.
  • Copyright Holder: FILE REUTERS (CAN SELL)
  • Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register