UPDATE: South Africa's ANC To Research Mine Nationalization
November 15 2010 - 10:30AM
Dow Jones News
South Africa's ruling party will appoint researchers to
investigate the viability of nationalizing the country's mines,
although the mining minister said Monday it wasn't government
policy even though the matter would continue to be debated.
The African National Congress plans to name two senior
researchers and a project manager to look at successful models that
could be considered, local media reported, citing comments from
party General Secretary Gwede Mantashe.
A report will be presented to the party's National Executive
Committee ahead of a major policy conference in 2012, he was quoted
as saying.
The ANC, which has ruled since the election in 1994 of the
country's first black president, Nelson Mandela, at a party
conference in September decided the issue of nationalization would
be researched after repeated calls for the state to take control of
mines by the ANC's youth wing.
Susan Shabangu, minister of mineral resources, told reporters in
Pretoria that nationalization wasn't government or ANC policy, but
the party had agreed the matter would be discussed. Shabangu at a
mining industry conference in February had said nationalization of
mines wouldn't happen in her lifetime, earning her criticism from
the ANC Youth League which has championed nationalization as a way
of spreading mineral wealth in the country to tackle widespread
poverty.
South Africa is the world's leading producer of platinum and
ferrochrome, and a significant source of gold and other minerals.
Mining is a major contributor to the country's economy and directly
employs about 460,000 people, according to government data.
Lonmin PLC (LMI.LN) in Monday said the vocal calls for
nationalization do little for investor confidence. "But we are
encouraged by the steadfast position that key government ministers,
senior leaders within the ANC and other industry participants such
as the National Union of Mineworkers have taken in arguing the
weaknesses and dangers for South Africa's economy of a policy of
nationalization," the platinum producer said.
A spokesman for the ANC wasn't immediately available to
comment.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com
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