Friday, September 28, 2012

ANC to potentially nationalize mineral reserves

SOUTH AFRICA (Mail & Guardian)- South Africa's governing political party, The African National Congress (ANC), has begun discussing various forms of state control of mineral reserves. According to the South African newspaper, Mail & Guardian,  members of the ANC discussed the issue, saying potentially, "state ownership, including more strategic use of existing state-owned companies, as well as strategic nationalization, where deemed appropriate on the balance of evidence." However, the ANC found that state control of 100% of mineral assets would be financially unfavorable, citing a potential cost in excess of R1-trillion. While this was deemed unfavorable, control in the form of "State-custodianship" was deemed more feasible. According to the Mail & Guardian, the ANC also recommended that the state develop strategies to identify and manage strategic minerals in the national interest. (Reliability: High)

Comment: These discussions are likely in response to the violent conflicts between striking miners and police in the last month at mining camps. The ANC also discussed the improvement of working conditions and increase of wages for workers and stated that any government policy enacted for the purpose of increase resource exploitation should "focus on benefaction".  The full congressional report can be found here: http://mg.co.za/report/2012-anc-national-policy-conference

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