Nationalisation of mines won't happen, says Shabangu
05 Feb 2013 11:29 - Chantelle Benjamin
The mines minister has told delegates at the mining indaba that the ANC and government are not interested in making mine nationalisation policy. Mineral Resources Minister Susan Shabangu has taken a reconciliatory approach at the 2013 African Mining Indaba, taking special effort to reassure investors that Africa, and South Africa in particular, is a lucrative investment.
Shabangu said on Tuesday she was aware that investors worldwide were looking with interest to government for indications about their positions on nationalisation and whether government would assist in creating an environment that allowed for mining industry, following the
very public spat between the minister and Anglo American Platinum over its decision to close four shafts and retrench about 14 000 staff members there.
The minister started her speech by recognising outgoing Anglo American chief executive Cynthia Carroll and incoming chief executive Mark Cutifani in the audience, Shabangu said South Africa was putting in place legislation that was intended to assist the mining sector and consequently the economy and government's job creation plans.
She told about 7 000 investors that nationalisation was not on the cards and was not being considered by the ANC or government. "Nationalisation is not an option for our country," she said.
The minister said the mining sector and government would need to work together to ensure that the social and structural problems that led to the unrest at the end of last year and into 2013 did not happen again.
"I am requesting that the mining sector work together to avoid a repeat of what happened last year. We cannot afford another Marikana," she said, referring to the violence that took place at Lonmin's Marikana platinum mine in August that left 44 people dead.
Shabangu acknowledged some challenges facing the mining sectors, including lower metal prices and higher energy costs. The platinum sector in particular was highlighted by her. She said a committee was set up last year June to look into the platinum sector.
A more coordinated strategy was being developed by government around the awarding of mining licenses to ensure faster turnaround for mining companies when it came to the approval and to ensurance that quality licenses were awarded.
Skills shortage
Skills shortage in the mining sector was recognised by government and it was actively working to address that, Shabangu said.
"I am very encouraged by the number of learners who are enrolling as engineers," she said.
Shabangu said the growth in the number of mines from 993 in 2004 to 1 000 in 2013 and employment now at 530 000 – down slightly in quarter four – was encouraging and indicated the value of South Africa as a mining destination.
She said it was important for all stakeholders to "be flexible to changes" and to ensure long term sustainability. Shabangu added it was vital for the country to have a sustainable tax regime that ensured South Africa's mining sector became the sector of choice.
Cape Town's mayor Patricia de Lille on Monday told delegates at the mining indaba that it was time for South Africa to see the benefits of being a mineral rich country.
"This indaba comes at a critical point in mining in South Africa. SA seems to have drawn little benefit from the commodity boom," she said.
Giving back
Taking government's line, De Lille told about 4 000 mining industry and subsidiary services that it was time to give something back after years of benefitting from the resources.
She said that there was a need at the indaba for meaningful debate around how to ensure that the country benefitted directly from its resources through beneficiation.
This year's conference is the largest ever held, with over 7 500 delegates, including mining executives, ministers, foreign investors and analysts.
Labels: CYNTYIA CARROLL, JOBS, MARK CUTIFANI, NATIONALISATION, NEOLIBERALISM, SUSAN SHABANGU
Read more...
Malema: 'Minister Manuel has no plan'
JOHANNESBURG, SOUTH AFRICA - Jun 22 2011 10:59
In an interview with SAfm on Wednesday, African National Congress Youth League (ANCYL) president Julius Malema wanted to know what Planning Minister Trevor Manuel had done since taking office three years ago. "It's almost three years and nothing has come out," said Malema of Manuel, who heads the National Planning Commission in the Presidency.
Malema said Manuel had only produced a document diagnosing the country's problems.
The 10 sayings of president Malema 'Capital suffers from a mind of a rat.' This is why people love him: 10 funny, trenchant, enlightening sound bites from Julius Malema's closing address at the ANCYL national conference.
"... Minister Manuel is one of the most celebrated ministers ... Nothing has come out, except a document that seeks to diagnose the crisis in South Africa. But there is no plan. Minister Manuel has no plan.
"We want him to develop a plan, he is a planning minister," Malema told host Xolani Gwala.
Malema said people could not continue to wait any longer. He said the league was in the spotlight after adopting as its policies plans for the nationalisation of mines and the expropriation of land without compensation as ways of addressing economic imbalances in South Africa.
'She should prepare the mining sector psychologically'
During the interview, Malema also said that Minerals Minister Susan Shabangu should start preparing the mining sector "psychologically" for nationalisation.
The ANCYL further expected Shabangu to be the first to explain "to our people why we are nationalising".
"She should prepare the mining sector psychologically, otherwise the mining sector will be in for a shock ..."
Putting the mines in the state's hands was adopted as a league policy at its policy conference, which ended on Sunday.
Shabangu recently dismissed nationalisation as "not an option" and "not current policy".
Malema said nationalisation of mines in Zambia had failed because demand for copper fell, and individuals, not the state, were the beneficiaries.
One of the proposals the league suggested was to start with new mining entrepreneurs.
When new mining licences are issued, the state should hold 60% of the ownership, and the mining company 40%.
Mines already operating could hand over the 60% portion to the state and, over time, be paid back through profits.
The ruling ANC has made it clear that mine nationalisation is not a party policy. Policies are formulated at national conferences. The next ANC national conference is in 2012 in Mangaung. -- Sapa
Labels: ANC, JULIUS MALEMA, MINING, NATIONALISATION, NEOLIBERALISM, SUSAN SHABANGU, TREVOR MANUEL
Read more...
Mining charter has not achieved aims, says minister
PRETORIA, SOUTH AFRICA Sep 13 2010 12:31
A review of the mining charter had revealed that targets set down for the transforming mining industry in 2004 have not been achieved, Minerals Resources Minister Susan Shabangu said on Monday.
Speaking in Pretoria, Shabangu said that
despite the charter, mining assets ownership had remained relatively unchanged, with only 8,9% falling under black economic empowerment (BEE) ownership.
The 2004 charter required companies to sell 15% of their South African assets to black investors by the end of 2009, and 26% by 2014.
The purpose of the charter was to set the framework, targets and timetables for the implementation of the government's transformation policies through its power to regulate and grant prospecting and mining rights.
Shabangu said that the review also revealed that white women and men still dominated management and technical positions. She said that white people continued to earn more than their black counterparts, who had the same skills and experience.
Disappointed
National Union of Mineworkers president Senzeni Zokwana was disappointed with the results.
Nchakha Moloi, chairperson of the South African Mining Development Association, was also disappointed with the results and called on the government to start fining companies that did not achieve the charter's aims.
The new charter aims to see that a minimum 26% of mining assets are BEE owned by 2014.
It also aims to ensure that mining companies procure a minimum 40% of capital goods from BEE entities. At least 70% of services and 50% of consumer goods should be obtained from BEE entities by 2014.
Mineral resources director Sandile Nogxina said that companies that were found not to comply with the charter could face penalties that could even include the revoking of a mining company's licence.
He said that a lack of commitment by mining companies to transformation as well as problems with financing BEE ownership had contributed to the ownership targets not being achieved.
He said that before 2014, BEE ownership targets would not increase, but did not rule out increasing targets after 2014. He said he was not prepared to speculate on BEE ownership targets after 2014. -- Sapa
Labels: BEE, MINING, NATIONALISATION, SUSAN SHABANGU
Read more...
