http://www.bbc.co.uk/news/business-12591324

South African President Jacob Zuma has launched a state-owned mining company, called the African Exploration Mining and Finance Corporation (AEMFC).

However the move is likely to cause concern amongst international investors, who may view it as a step towards the nationalisation of South Africa's mining industry.

Mining is one of South Africa's most important economic sectors.

Mr Zuma said the body would bring all state mining interests into its remit.

"The role of the state cannot merely be confined to that of a regulator. The state must actively participate in the mining industry to ensure that our national interest is protected and advanced," Mr Zuma said.

"Government policy on minerals and mining does not make provision for the nationalization of mining assets, but it does not prevent the state from participating actively in mining, competing with other companies," he said.

Small step?

Recently South African mining minister Susan Shabangu moved to reassure investors when she said the nationalisation of mines was "not the option."

However there has been a debate within the ruling African National Congress party as to whether the country's mining industry should be fully nationalised.

The South African Communist Party also supports the nationalisation of mining.

"What is worrying for mining investors is, where does it go from here?" said Alison Turner, an analyst with Panmure Gordon.

"Is this just a small step to a much broader transfer... to state ownership?" she added.

South Africa is a a leading producer of precious metals such as gold and platinum as well as a major supplier of coal.

This company has been operating for a few years already

Jacob Zuma seems to be doing a nice job. Go S. Africa! :cheer:

more like an ANC owned mining company. Zuma is merely enriching himself and his family. Kumba and its underhand dealings come to mind.

Why does SA needs a State mining Company for? This is legal corruption.

^^Because we want to profit from our mineral endowments, maybe Congo will learn something...

"We" being the ANC, of course.

No 'WE' meaning the whole nation of SA, mineral wealth belongs to the people as per freedom charter and the Mineral Act, it is held in trust by the state.

State participation in mineral sector is vital if SA hopes to be a rich country within opur lifetime, look at Botswana, look at the Bafokeng tribe and Impala Plats.

I do understand that you've been raised on a diet of free-market ideology and you believe it's private markets or nothing. But I personally belive that the state has a role to play. The economy is not above the people, markets are servants of the people. What's the use of having the greatest mineral endowments if most of the profits are repatriated to London?
Norway has a state-owned oil company, Chile has a state-owned copper company, China has lots of state-owned mining companies, so does India, so does Botswan and many other countries. SA needs to be decisive, if there's going to be a mining super-cycle like most analysts predict this is going to cause distortions in the local mkt, e.g. Eskom is already struggling to get sufficient coal as it is more lucrative for mining comanies to sell it on the spot-mkt and export it, do you not think there's case for state regulation in that sector so that we can always have strategic stocks of this vital energy source?


Stop the gimmicks and look at it objectively, I know it's election time and you DA-boys are highly excitable but do try look at the situation objectively instead of mouthing off platitudes about ANC...

No 'WE' meaning the whole nation of SA, mineral wealth belongs to the people as per freedom charter and the Mineral Act, it is held in trust by the state.

State participation in mineral sector is vital if SA hopes to be a rich country within opur lifetime, look at Botswana, look at the Bafokeng tribe and Impala Plats.

I do understand that you've been raised on a diet of free-market ideology and you believe it's private markets or nothing. But I personally belive that the state has a role to play. The economy is not above the people, markets are servants of the people. What's the use of having the greatest mineral endowments if most of the profits are repatriated to London?
Norway has a state-owned oil company, Chile has a state-owned copper company, China has lots of state-owned mining companies, so does India, so does Botswan and many other countries. SA needs to be decisive, if there's going to be a mining super-cycle like most analysts predict this is going to cause distortions in the local mkt, e.g. Eskom is already struggling to get sufficient coal as it is more lucrative for mining comanies to sell it on the spot-mkt and export it, do you not think there's case for state regulation in that sector so that we can always have strategic stocks of this vital energy source?


Stop the gimmicks and look at it objectively, I know it's election time and you DA-boys are highly excitable but do try look at the situation objectively instead of mouthing off platitudes about ANC...

The US government has and owns strategic oil reserves as well. if or when need be it's to pump it in to the oil market to affect oil pricess that will be favoribly to US security and consumers. this was done during the first persian gulf war of 1991. It's a good thing that what the SA government is doing. this is just my opinion.

i agree with jules its important to have a state owned mining company especially considering that a majority of our electricity comes from coal , can't relxc on the market for security

I dont think it is a bad idea at all. Obviously its all hyped up with the nationalisation debate, but they will never nationalise all the mining etc, believe me.

It is a topic of distraction at the moment. The Govt uses the moron Julius Malema as a kind of a smokescreen.
He rants and raves like an old school revolutionary - problem is, he doesn't seem to understand that we have already had our revolution.
They have already censured him, when he has served his purpose they will drop him and leave him to the wolves.