"Contrary to the view that there must be less state involvement in the economy, the lessons from the recent economic and financial crises . [are] that more state involvement is sought," Motlanthe told the ninth international mining history congress in Johannesburg.

State involvement would secure the socio-economic development of South Africans, he said. For this reason, the government endorsed the African Exploration Mining and Finance Corporation (AEMFC), as the "nucleus" of a state-owned mining company.

It was through the AEMFC that the state could consolidate its participation in mining and focus on ensuring the security of supply of minerals of strategic significance.

A state mining company would complement the resuscitation of the mining industry as, despite the industry's potential, private sector exploration investment had steadily declined since 1994, he said.

Motlanthe said it was not sustainable to have a mining industry which used national resources almost exclusively to enrich a small minority.

The government wanted to see industry transformation which included increasing employment in mining and related industries.

At the same time, it wanted increased local procurement, fair prices for local manufacturers and a fair share of mining returns going to the fiscus.

It also wanted more women in mining and more blacks in mining management and the skilled trade. Communities around mines should benefit and have a secure future beyond the life of the mine.

"The challenge is to get there without creating unnecessary uncertainty or costs for mining," Motlanthe said. The government's goals could not be achieved overnight but had to be phased in.

Motlanthe said legislation introduced since 1994 had resulted in meaningful participation of previously disadvantaged people in the mining industry.

He said the government was committed to providing transparent, accountable and fair regulatory frameworks.

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Wed Jun 19 15:41:57 SAST 2013 ::

Apr 18, 2012

Sinudeity

And once the state has "more shares in mining"...

It will only enrich a small minority.
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Apr 18, 2012

Pointman

More state intervention - moref fcuk ups. Hospitals, schools, municipalities, home affairs are all dysfunctional - leave the mines alone.
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Apr 18, 2012

JajasQueen

Pointman
More state intervention - moref fcuk ups. Hospitals, schools, municipalities, home affairs are all dysfunctional - leave the mines alone.
__________________________

So you can continue to r@pe our country's resources as you currently are!

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Apr 18, 2012

mambaaai

@Pointman valid points.........the state can change the royalties and tax laws at any time....and there they have collected more money by the swish of a pen. the state has implemented BEE etc and audits the mines....at this point the mines are run by competent people and not cronies and cousins

history has shown in the former soviet union many mines ran at a loss but they were kept running becasue they didnt want to lose the jobs. In SA the political party would be too afraid to close a unprifitable mine down because of losing votes etc
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Apr 18, 2012

Sinudeity

JajasQueen - Meanwhile, 50% of the 'raping' of state resources go to the South African revenue services. And the minerals directly benefit the country. Only 3% of the money made goes overseas. The rest remains in the country.
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Apr 18, 2012

JajasQueen

@Sinudeity

If the monies are going to AA canditates, no problem!

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Apr 18, 2012

Sinudeity

JajasQueen - You mean like Aurora mines?
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Apr 18, 2012

Pointman

@mambaaai - that is the correct way to go - extract as much tax from the mines since they are efficient and well run already - in this way the people will benefit without risking any capital or suffering any state incompetence or corruption - expect if the receipts are squandered like in Nigeria.

@JajasQueen - what r@pe? We currently get huge amount in taxes from the mines - if the state intervenes then we might end up subsidising the mines like happnened in Britains coal mines. Let the capitalists carry the risk.
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Apr 18, 2012

JajasQueen

@Pointman

This is not Britain.

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Apr 18, 2012

Sinudeity

JajasQueen - But you are forgetting about all the other state businesses, requiring hundreds of millions, if not billions rands worth of bailouts. Transet/Eskom/Denel/SAA.
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