Malema fuels debate for nationalisation of mines

The call by ANC Youth League (Ancyl) president Julius Malema for gold and platinum mines in the country to be nationalised could make for an interesting debate, according to Busa deputy chief executive officer Raymond Parsons. Speaking at a press briefing on Busa’s forecasts for 2010 in Johannesburg recently, Parsons said if Busa were ever confronted with a choice between nationalism and competition, it would choose competition. “If you want a healthy economy you must have more competitiveness in that economy.” Parsons said looking at all the major studies conducted in recent years on the South African economy, while also taking into account countries that had nationalised mines, it was maybe a worthy debate. “Business, however, would not depart from the point of view that competition is healthy and necessary.” Malema has been extremely vocal in recent times that mines in the country should be localised. Speaking in December at an SA Students Congress at the University of Kwa- Zulu Natal, he was quoted as saying it was not a difficult process to transfer mines from private hands to the state. “This is happening in Botswana, where De Beers are in partnership with the state. The state owns 60% of its minerals and De Beers even pays tax.” He said South Africa should be looking at profitable minerals as the ones to be targeted first. “Platinum, which is easily found in Rustenburg, is still very easy to mine because it is still very shallow. The same applies to coal in Witbank,” said Malema. “We are told we are going to scare the markets if we continue talking about this issue. If the markets want something they will stay. Markets continue to go to countries where there are civil wars.” Malema has admitted that he may not be an economist, but insists that when it comes to mining the state should have the controlling stakes.