JOHANNESBURG (miningweekly.com) - A decision had been taken to develop a State-owned mining company in South Africa, but there would not be nationalisation of the South African mining industry, Department of Minerals and Energy DDG Jacinto Rocha said.

Rocha told an audience at the Gordon Institute of Business Science in Johannesburg that “the State is going to be involved in mining”.

“If there are platinum opportunities, we are going to get involved, either directly as a miner or indirectly as a shareholder,” Rocha said.

Besides platinum, the State would also consider opportunities in gold, uranium and all minerals of strategic importance

“We’re going to participate in that, it’s no secret, it’s true,” Rocha said.

The company that would be used as a vehicle for the development of a State-owned enterprise was “nothing new” and had been in existence since 1944 and would be revived.

Already in existence was the State-owned Alexkor diamond enterprise.

The issue was not whether mining companies were State-owned or privately owned, but centred on the quality of the mining expertise and the quality of the management appointed.

There had been no objection to the creation of the State-owned PetroSA out of Soekor and Mossgas, the difference being that it was in oil.

In neighbouring Botswana and Nambia there was already joint ventures between the governments of those countries and diamond miner De Beers in the form of Debswana and Namdeb.

The State printed money and, if there were challenges, “we’ll just add a zero,” he quipped, which was a reference to his earlier banter that, "when government finds itself in challenging times, we spend money to print money and we add zeros" .

On black economic empowerment (BEE), although historically advantaged South Africans – whites – were in the minority in South Africa, they invariably received the majority shareholding – 74% – in BEE deals, and historically disadvantaged South Africans – blacks – the minority holding of 26%.

While the country tended to rely on the minority to supply most of the skills, it then complained about the lack of skills.

The debate needed to centre on extent to which “we are giving crumbs to people”, with the minority getting “most of the bread”.

“This is a challenge we have in the context of the reviewing of the Mining Charter next year,” Rocha added.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.