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Second state-owned company obtains mining right

Minerals resources
minister Susan
Pretoria, South Africa — MININGREVIEW.COM — 12 October 2010 – The government of South Africa has granted a mining right and 27 prospecting rights to the state-owned mining company African Exploration Mining and Finance Corporation.

This development was revealed by minerals resources minister Susan Shabangu, according to Business Report.

African Exploration is one of two state-owned mining companies, the other being diamond producer Alexkor Limited.

The mining ministry revealed in August that it was planning to launch a third state-owned mining company which, if approved by the Cabinet, could be formed before the end of this year.

The ruling ANC last month agreed to explore greater state control of the mining sector, but made no shift in economic policy at one of the party’s biggest meetings in years.

The ANC said no decision would be taken before 2012 at the earliest, when the party holds its next major meeting.