ANC Youth League leader Julius Malema says the ruling party will nationalise mines after 2012.

ANC Youth League leader Julius Malema says the ruling party will nationalise mines after 2012.

"I know nationalisation is on the agenda of the ANC and it is only I who can tell you that. Nationalisation will be resolved as a policy position of ANC in 2012.

"When it happens, you should not be shocked. We are in the process of policy formulation," Malema told Parliament yesterday.

President Jacob Zuma has previously said nationalisation was not an ANC policy. Mining Minister Susan Shabangu said in February this year that there would be no nationalisation in her lifetime.

Malema said the ANC-led government would have to nationalise the mines if it was to generate enough revenue to deliver on promises it made to the electorate.

He said the money currently generated from taxes was not enough to deliver services to the poor.

Malema also said the new industrial policy, which was supposed to create permanent jobs, would be a flop without a cash injection from nationalised mines.

"Logic should tell you that we are not reaching as many people as we expected. When you have a budget constraint you must look for extra income . beneath the soil, we need to go under the soil and get that extra income."

Malema addressed the portfolio committee on mining as part of public hearings begun on the establishment of a state-owned mining company. He proposed that mineral rights be transferred to the state-owned company.

He said the state should keep a minimum of 60percent of the shares in any mining venture.

The other 40percent could be given to private companies who met broad-based black economic empowerment conditions.

Describing the scenario, Malema said it was like the state owning a car and the private partner putting in petrol to reach a common destination.

"The private partner must pay tax, must pay royalties so that private ownership leaves with a very minimum out of this arrangement. At the end you leave with 10percent or 5percent.

"We are not for maximising profit for personal accumulation of individuals."