Midrand, South Africa — 02 July 2012 – In a significant development for the South African mining industry this past week, the research report on state intervention in the mining industry (SIMS) rejecting nationalisation was accepted by the ANC’s policy conference.
Revealing this here, Fin24 reports that this means that the conference said “no” to nationalisation, but certainly “yes” to the state playing a bigger role in the mining industry.
Nationalisation as a broad principle was discussed at length during an emotional debate and will probably surface again at the Mangaung conference in December.
When the conference closed on Friday evening there had been few other indications of decisions taken on economic policy, despite hopeful expectations that the uncertainty about issues like land ownership, higher taxes for mines and compulsory mineral enrichment would be resolved.
As far as the mining industry is concerned the acceptance of the research report amounts to a no, said Enoch Godongwana, the ANC’s head of economic policy, after the closure of the Midrand conference.
It was in September 2010 that nationalisation first appeared on the agenda of the national executive meeting in Durban, he said. It had been decided that information on nationalisation in the mining industry should be obtained before a decision could be taken. A team was appointed to examine research on state involvement in the mining industry.
“The evidence presented in the research report does not indicate the inclusion of nationalisation as a policy option in our circumstances,” said Godongwana.
As far as rental income (income on super profits) is concerned, it was decided that this would be collected by means of taxation instruments. “What the instruments should involve is, however, still undecided,” he added.
But the conference’s decisions will not allay concerns about ANC policy. It was a continual theme accompanying all decisions at the week’s conference that policy should be more militant and radical and that all delays in applying policy should immediately come to an end.
Source: Fin24. For more information, click here.