2nd UPDATE: S Africa's ANC To Research Mine Nationalization
November 15 2010 - 12:10PM
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, party General Secretary Gwede Mantashe said in
a statement.
A report will be presented to the party's National Executive
Committee ahead of a major policy conference in 2012, he said.
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.
Industry body the Chamber of Mines said it welcomed the party's
decision to bring independent researchers into its investigation
into the role of the state in mining.
The chamber, which has come out strongly against
nationalization, said it has already undertaken a significant
amount of research into the matter and will make its findings
available to the researchers.
"The chamber will also engage with the ANC on how the mining
industry can assist with the investigation," chamber Chief
Executive Zoli Diliza said.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848;
robb.stewart@dowjones.com
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