LONG-RUNNING investor concerns about whether South Africa might nationalise its mines will be laid to rest at the ruling ANC'sconference this month, the country's mineral resources minister said.
More than two years of support for nationalisation from radical elements in the ANC unnerved investors and has been seen as a key reason why the sector has not attracted the foreign capital it should.
But an ANC study released in February said nationalisation would be an "unmitigated disaster". Instead, it urged higher taxes and royalties which the sector could find hard to absorb as it struggles with soaring labour and power costs.
"There has been much speculation as to what the ultimate result of the ANC discussions will be on nationalisation," Mineral Resources Minister Susan Shabangu said at a Johannesburg business school yesterday.
"This will be laid to rest in two weeks," she said, referring to the ANC policy conference starting on June 26.
Shabangu has signalled her iron-clad opposition to nationalising mines in the world's largest platinum producer, as has President Jacob Zuma.
The face of the nationalisation drive, former ANC Youth League leader Julius Malema, has been suspended from the ANC for bringing it into disrepute, killing any influence he might have had over the policy.
Shabangu said her department commissioned a report on the state of the platinum sector three months ago and was complete.
This comes as the sector grapples with depressed prices and escalating costs which have pushed marginal operations into the red, as well as violent labour strife and a government safety drive which hit production hard in 2011 and earlier this year.
Major platinum producer Aquarius Platinum this week scaled back activities due to low prices.
Shabangu said the sector was too important to the economy to allow it to slide. "We must look at ways to grow, not decline production," she said.
Fears over mines 'to end'
LONG-RUNNING investor concerns about whether South Africa might nationalise its mines will be laid to rest at the ruling ANC'sconference this month, the country's mineral resources minister said.
More than two years of support for nationalisation from radical elements in the ANC unnerved investors and has been seen as a key reason why the sector has not attracted the foreign capital it should.
But an ANC study released in February said nationalisation would be an "unmitigated disaster". Instead, it urged higher taxes and royalties which the sector could find hard to absorb as it struggles with soaring labour and power costs.
"There has been much speculation as to what the ultimate result of the ANC discussions will be on nationalisation," Mineral Resources Minister Susan Shabangu said at a Johannesburg business school yesterday.
"This will be laid to rest in two weeks," she said, referring to the ANC policy conference starting on June 26.
Shabangu has signalled her iron-clad opposition to nationalising mines in the world's largest platinum producer, as has President Jacob Zuma.
The face of the nationalisation drive, former ANC Youth League leader Julius Malema, has been suspended from the ANC for bringing it into disrepute, killing any influence he might have had over the policy.
Shabangu said her department commissioned a report on the state of the platinum sector three months ago and was complete.
This comes as the sector grapples with depressed prices and escalating costs which have pushed marginal operations into the red, as well as violent labour strife and a government safety drive which hit production hard in 2011 and earlier this year.
Major platinum producer Aquarius Platinum this week scaled back activities due to low prices.
Shabangu said the sector was too important to the economy to allow it to slide. "We must look at ways to grow, not decline production," she said.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos