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MINERALS LEGISLATION
Nationalisation of mines not on the cards yet, says Mineral Resources Department deputy DG
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29th January 2010
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It is highly unlikely that any policy changes on nationalising South Africa’s mines would be considered in the next two years, but the issue might be raised at the ruling party’s next policy conference in 2012, a top government official has said.

The Department of Mineral Resources’ deputy director-general, Jacinto Rocha, told an audience at the Eversheds mining seminar, held in Johannesburg last week, that one had to take the ruling African National Congress’s (ANC’s) policy development pro-cesses into account, and not go on pure speculation.

Every five years, the ANC holds a conference where all significant policy decisions are discussed and decided. During the period following the conference, policies are adjusted and adopted.

The ANC’s previous policy conference was held in 2007, which means that the next policy debate, and potential policy changes, will only occur in 2012.

“Any mention of policy changes between 2007 and 2012 is only peoples’ ideas. Now, there are people concerned that the president of the ANC, Jacob Zuma, says one thing and the president of the ANC Youth League, Julius Malema, says another. Let me put it this way: the president of the ANC, who is also the President of the country, said that nationalisation will not be taking place now; then why lend your ears to the youth league?”

Nevertheless, he acknowledged that the issue of nationalisation might be raised in 2012, at which time a decision would be made. However, all legal processes, practices and guidelines would first have to be passed to implement such a decision.

Rocha noted that nationalisation might not always seem to make sense commercially or economically, and he asked whether, constitutionally, nationalisation might be in the interest of the public, which is represented by the State.

“However, a mine is not part of national patrimony; a mine is private property, which is why this concept will have to be thoroughly analysed and a decision made on its feasibility, following the correct legal routes.”

Rocha emphasised that South Africa was not a country of decree, but a democracy where all laws and processes had to be adhered to. “You will not be woken up by the President one morning announcing that, by decree, he will nationalise the mines. That is just arbitrary. All policies and processes will be followed,” he concluded.

Edited by: Martin Zhuwakinyu
 
 
 
 
 
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Nationalization is more than a careless comment by a populist cowboy lobbying support among the jobless and poor. The long term needs of the country need to be investigated without reference to temporary political ideology. SA cannot afford to Nationalize the mines; SA cannot afford the lost investment both local and foreign if it nationalizes without compensation; SA parastatals all lose money or have been subjected to massive fraud and innefficiency; and SA workers will not be better off, they only need to see the problems workers are having in the communications, health, education, military sectors etc..etc.. If and it appears as if the most necessary target for nationalization is Public Transport. The lack of investment, control and service provision is so appalling that only a socialised policy is the only possible remedy. We should be getting our priorities right, or is it that rhetoric about nationalizing our lawless taxis, buses and the declining rail network is not politically correct.
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Garth on 31st January 2010
 
JACINTO ROCHA

South Africa is a democracy where all laws and processes have to be adhered to
 
JACINTO ROCHA South Africa is a democracy where all laws and processes have to be adhered to