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Government expands its role in mining

Minister in the
presidency Collins
Pretoria, South Africa — MININGREVIEW.COM — 10 December 2010 – The South African government “’ facing calls from parts of the ruling African National Congress to nationalise mines “’ is to expand its role in the industry, splitting a state-run minerals company from the country’s energy fund.

“The African Exploration, Mining and Financing Corporation (AEMFC) is to be the nucleus for the proposed state-owned mining company,” minister in the presidency Collins Chabane revealed here.

Briefing the media following cabinet’s last regular meeting of the year, he said the executive had approved that the AEMFC “’ currently a wholly-owned subsidiary of the Central Energy Fund (CEF) “’ be separated from the fund. “The AEMFC will become a stand-alone entity that will constitute the nucleus for the state-owned mining company," he explained.
“The Mineral Resources and Energy departments will develop modalities for separating the AEMFC from the CEF group of companies,” Chabane added.
“When that state mining company was set up, the intention was to expand the involvement of the state in the mining sector and therefore I think that objective will still remain,” he continued.