Johannesburg, South Africa — 19 April 2012 – The recent global financial crisis illustrates the fact that more state intervention is needed in the mining industry in South Africa, says deputy president Kgalema Motlanthe.
Miningmx reports that, according to a Sapa report, he told the ninth international mining history congress here that, contrary to the view that there should be less state involvement in the economy, the lessons learnt from the recent economic and financial crises were that more state involvement was sought.
“For this reason, the government endorsed the African Exploration Mining and Finance Corporation (AEMFC), as the nucleus of a state-owned mining company,” he added.
The deputy president went on to say that 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,” Motlanthe pointed out.
Source: Miningmx. For more details, click here.