JOHANNESBURG (miningweekly.com) – The South African government had no "immediate" plans to nationalise South Africa's mining industry, and nationalisation was not a decision that could be taken "on the hoof", South Africa's Deputy President Kgalema Motlanthe said on Monday night.

Motlanthe, a former head of the National Union of Mineworkers, told attendees at a gala dinner to mark the 120th anniversary of South Africa's Chamber of Mines, that it was the slow progress towards the transformation of the South African mining industry that had given rise to the call for the nationalisation of the industry.

"For quite some time now, there have been concerns that the mining industry is not transforming as quickly and as sufficiently as it could.

"It is these concerns that have fuelled a call for the nationalisation of the mining industry from some quarters of our society," he said.

While this "healthy" debate continued, the mining sector should take comfort in the knowledge that there were no immediate plans from the State to nationalise the mines.

Public discourse should be separated from public policy, which was the outcome of extensive multisectoral consultation within the African National Congress-led government.

"It's not a decision that can be taken on the hoof, so to speak," Motlanthe said.

However, the country needed to expedite the transformation of its mining industry.

"That transformation cannot be limited to changing the nature of ownership, but must enhance the contribution of the industry to development, the creation of decent work opportunities and sustainable growth.

"I am told that the Department of Mineral Resources is finalising its assessment of the progress that has been made in achieving the objectives of the Mining Charter, as agreed upon by the industry stakeholders when the Mining Charter came into effect in 2004.

"To that end, I urge you all to cooperate in this exercise so that we can enrich our discourse on transformation.

"We as government are committed to broad and meaningful consultation with all stakeholders.

"We need to ensure that the implementation of the charter benefits, above all, our communities and workers and our economy as a whole," Motlanthe said.

The government's particular concern around transformation was to ensure that the mining industry contributed to the diversification and growth of the South African economy, to enhance the value of exports, localise imports and create sustainable jobs.

Motlanthe said that the government beneficiation strategy sought to encourage the mining industry to facilitate downstream minerals beneficiation.

This was necessary to facilitate economic diversification, expedite progress towards a knowledge-based economy, achieve incremental growth of the gross domestic product in minerals value addition, and to create opportunities for enterprise development and skills development.

"Our core concern is to explore how we can together support the final fabrication of metals rather than focusing on smelting and refining.

"That kind activity may seen to be beyond the competence of the mining companies. Still, it is important that we collaborate in achieving our aim of industrialisation as far as possible.

"Beneficiation presents numerous opportunities for investment in the country by both South African and foreign investors.

"We look to the chamber to help us to realise the opportunities that arise from adding value to our rich natural resources," he added.

He praised the Chamber of Mines for the high level of cooperation and trust that it maintained with its stakeholders.

"We appreciate the efforts made to ensure meaningful transformation. Our people have high expectations on the mining industry to maintain and expend socioeconomic development in the country," he said.

In meeting the demand for transformation, the chamber would need to persist in its commitment to the inevitable processes of change that were "so critical to recognise and respond to".

"You must be the brains trust and provide leadership," he said.

For its part, the government also recognised that the success of the next 120 years of the South African mining industry could be greatly facilitated by creating an environment that enabled the mining industry to perform optimally and perpetuate its established role as a creator of jobs and a generator of wealth.

"It is the experience of mineworkers that has taught us that our past we inherit but our future we create. Therefore it is within our means and capabilities to create a better future for all of our people," Motlanthe said.

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