The South African government has launched a state owned mining company. President Jacob Zuma launched the African Exploration Mining and Finance Corporation or AEMFRC with the hope that it would bring all state mining interests into its remit.
However the National Union of Mineworkers were not invited to the launch and protested about the incident. The move may be seen as a cause for concern by the many multinational mining companies that operate in the nation. Coming as it does after strong calls for nationalization of all mines by the youth section of the ANC.
President Zuma’s statement may also be construed as ominous by some as he said that 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.
He added that the 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.
This may help the mining industry breathe easy for a while as will the assurances of the mining minster for South Africa Susan Shabangu who insisted that the nationalization of mines was not the option. Although a debate for nationalization of the mining industry has been raging in the ruling African National Congress part for a while now, not much has come of it as yet.