ANC Study Rejects Nationalization of South Africa Mines, Business Day Says

February 2, 2012 | By More

A report by South Africa’s ruling
African National Congress found that the nationalization of
mines, as proposed by Julius Malema, head of the party’s youth
wing, would be unconstitutional and too expensive, Business Day
reported, without saying where it got the information.

The government can’t afford to buy stakes in South Africa’s
mines, and it would be against the constitution to seize them,
the Johannesburg-based newspaper said. Mining companies should
pay more tax and royalties, and there should be more processing
of raw materials locally with higher duties on the export of
unprocessed minerals, Business Day said.

The study, compiled by three economists, is intended to
guide the ANC’s discussions into how to better distribute South
Africa’s mineral wealth, Business Day said. The report is
expected to be discussed by a meeting of the ANC’s national
executive committee, the newspaper said.

The ANC’s youth wing has called for the nationalization of
mines and the seizure of land in South Africa, where more than a
quarter of the population is unemployed. The ANC, led by
President Jacob Zuma, has said that mine nationalization isn’t
government policy.

The ANC has received the report, Keith Khoza, a spokesman
for the Johannesburg-based party, said by mobile phone today,
adding that he is unaware of its contents or recommendations.

“It’s quite possible it could be presented to the ANC’s
national executive committee meeting starting today,” he said.
All discussion papers need to be presented to the NEC before
being distributed to the ANC’s other structures, Khoza said.

‘Ill Discipline’

Leaders of the largest companies operating in South Africa,
including Anglo American Plc (AAL) and AngloGold Ashanti Ltd. (ANG), have
said that Malema’s nationalization drive is deterring foreign
investment and curbing growth in

Read more here

Tags: , , , , , ,

Category: Africa News

Comments are closed.

«
»