Nigeria resumes mining in Zamfara state on improved security
Nigeria has lifted a ban on mining exploration in the northwestern state after a five-year suspension.
Businessweek quotes a confidential report prepared for South Africa’s mining CEOs as saying South Africa’s ruling party is closer to some form of nationalization than at any other time since the end of apartheid. A government takeover of mines could choke investments in a country with metal and mineral reserves estimated at 2.5 trillion and lead to a collapse of the currency, the rand.
Firebrand Julius Malema (pictured), the leader of the youth wing of the ruling African National Congress which often acts as kingmaker in the country’s politics, is spearheading the campaign to seize mines, farms and banks. Malema is never far from headlines in the country with racially charged comments but now an anti-corruption police unit is probing a trust fund owned by him allegedly being used to funnel payments in exchange for securing government tenders.
News24 reports South African police unit The Hawks, are investigating a trust fund run by the ANC Youth League president after newspapers carried reports detailing his lavish lifestyle including buying smallholdings and houses for cash and allegations from a businessman who claimed he had paid R200 000 ($30,000) into the trust’s bank account after Malema facilitated a government tender for his business. The ANC Youth League was founded by Nelson Mandela and other anti-apartheid leaders.
Businessweek quotes the author of the report Claude Baissac, the Johannesburg-based founder of country-risk consultants Eunomix: “The possibility of the ruling party voting for a major policy shift affecting security of tenure and ownership of the mines is now greater than at any point since the end of apartheid. [Mining companies] will now dismiss the prospect of nationalization, whichever form it ultimately takes, at their peril.”
Baissac also states in the report an ANC vote for nationalization “would represent the crossing of the Rubicon for both the ANC and for the country,” and shares of companies “with a large exposure to South Africa would tumble. Foreign capital would rush out of the country, bringing an immediate collapse of the rand.”
In June, MINING.com reported a new South Africa documentary engineered to make a case for nationalisation called Mining for Change: A Story of South African Mining, presents studio footage of ANC Youth League president Julius Malema, likening mining company owners to car thieves, an allegation Malema has since repeated on more than one occasion. MINING.com also reported during a youth league conference in June attempts by mining giants AngloGold Ashanti and Anglo American to sup with the leaders of the ANC Youth League and possibly sway them against nationalization flopped.
In June, the union representing the vast majority of mine workers backed the country’s Freedom Charter clause on nationalization. South Africa’s union confederation Cosatu, the Communist Party and the ANC make up the country’s ruling alliance which next year will make a formal decision on the nationalization of the resource sector ahead of its leadership conference at the end of 2012. The Freedom Charter states:
The national wealth of our country, the heritage of South Africans, shall be restored to the people. The mineral wealth beneath the soil, the banks and monopoly industry shall be transferred to the ownership of the people as a whole.
Opinion site The Daily Maverick reports South Africa already has one nationalised mine – diamond company Alexkor – and few will be surprised by the fact that it is losing money hand over fist.
The Citigroup report compiled by its mining analyst, Craig Sainsbury, in 2010 states of South Africa’s $2,500bn worth of reserves, $2,300bn resides in the platinum group metals. In dollar values Guinea, South Africa, India, the Ukraine and Kazakhstan are the countries that under-produce the most in terms of their reserves:
3 Comments
Pmarumule
Since the nationalization of mines is said to benefit the nation, which Julius having already indicated his plan of funding the mines by nationalizing banks as well, may he please show us a plan as to how the nation would benefit from the nationalization! South Africans must remember that the current state, which Zimbabwe is in, did not happen over-night. It was because of poor decisions like these that led Zimbabwe to be in the state that it is in.
Rod Banks
If ther is any country that is under-produce it is Zimbabwe. Its gold production should be around 50 tonne plus per an. With the three platinum mines. There is a possiblity be a couole more the could be producing.
With its agriculture potential, tourism, pus the diamonds that nobody was suppose to not kwown they were there. De Beer know. It was part of its long term strategic plan, when Zimbabwe was settled.
Zimbabwe should Striving even into World Melt down, with the right Plannig and Government.
Zimbabwe had all the people to transform the country the right way of all colour and crede.
They could have been and were for a time an good example to all Africa. Where are they now through Nationalision. This is only one example, on South Africa’s door step. There are many others through the world staring in Russia.
African ideas of Nationalisam, is to stripe all the assess from the compamies they nationalise and sell them, and spend the funds they receive on pleasures for the Chef.
Am I wrong? If so show where they have not!
Chibhanz
I think using Zimbabwe as an example is both unfair and inconsistent.The troubles in Zimbabwe cannot be attributed to Mugabe alone. The Brits as the former colonial masters have to share the blame. The Rhodies had it coming because they did not reciprocate the hand of reconciliation.Where in the world except in Scotland did one see such skewed land distribution?
The foregoing comments are nothing but racist and would like to perpetuate the notion that we blacks cannot do anything right. The present income disparities in South Africa are the cause for the present revolutionary undercurrents. Malema style is misguided, but the ruling party should have an alternative plan to economically empower the general populace.
Black people do not want to own the mines, they want a fair return for their labour. They want to be afforded the same opportunities to own the mines. Present owners go back to the times of Cecil John Rhodes and the gold rush of the 19 century.
If the ANC government wants a peaceful transition to the ownership of this vital productive resource- land- then they should bring out their blue print now. If nothing is to hand, I suggest they set up a national caucus which will be comprised of the state,industry,trade unions,political parties and religious leaders to chart the way forward before Malema gets his way with the support of the masses.