South Africa says ‘no immediate plans’ to buy mines

Finance

South Africa hasn’t any “immediate plans” to take over private mines and bring them under state control, according to Deputy President Kgalema Motlanthe.

“There are no immediate plans from the state to nationalise the mines,” he said in a speech to the Chamber of Mines in Johannesburg. “There have been concerns that the industry has not transformed as quickly or sufficiently as it could. It is these concerns that have fuelled a call for nationalisation from some quarters of our society.”

African National Congress Youth League leader Julius Malema said the ruling party’s founding document requires that mines are nationalised, the South African Press Association reported on October 9.

The Congress of South African Trade Unions has also called for South African President Jacob Zuma to impose state control over the industry. Zuma unseated Thabo Mbeki as ANC president in 2007 with support of the unions and youth wing.

South Africa is the world’s biggest producer of platinum, chrome, vanadium and manganese, the third-largest gold miner and the largest source of coal for European power plants.

Unions and the youth league say nationalisation became ANC policy when the party adopted the Freedom Charter in 1955. Zuma said July 10 calls for state takeovers were just a “debate.”

The economy, the biggest in Africa, may be recovering from its first recession in 17 years as demand increases for gold and platinum, the country’s biggest exports. The Reserve Bank has cut its benchmark interest rate six times to 7% since December to spur consumer spending and curtail recession.

Nov 2 (Bloomberg)