Nationalisation of mines in south africa pdf

Even though south africas reserve bank has private shareholders, they have absolutely no say over monetary policy. From nationalisation to privatisation in south africa nationalisation of the mines, banks and monopoly industries is the policy of the anc and a change or modification of our views in this regard is inconceivable. South africa is currently engaged in a heated debate on whether to nationalize the countrys mines, the outcome of which will greatly affect the future of the economy as. Nationalisation to industrialise and create more jobs. A storm erupted in policy circles in south africa after julius malema the leader of the african national congress youth league ancyl boldly proclaimed the need for the mining industry in south africa to be nationalized. The demand was predicated on fulfilling the vision of the freedom charter, which was adopted at kliptown in 1955 as the manifesto of the liberation struggle. Back to a prosperous future, or down a rabbit hole. Should mines and banks in south africa be nationalised.

Nov 19, 2009 currently, south africas government claims that it has no plans to nationalize its mining industry. Policy implications of the nationalisation of mines in south africa. Keywords nationalization, south africa, mining sector. A strong case against nationalisation emerges, which can be. At the very least, this would completely devalue the already ailing rand and.

If nationalisation is not the answer, then what is for south africa. The debate on the nationalisation of mines has gained intense attention from all such qualifies the call for nationalisation of mines in south africa as there are japan predicted for china would not have been resolved through privatisation. This is especially true in light of his most recent talkleft walkright statements concerning nationalisation of mines, south africa is one of the worlds most. Policy implications of the nationalisation of mines. In nationalising the mining sector in south africa, the state government believes it would have the capabilities of attracting labourintensive mining industrialists who will process mineral resources and diversify the south african economy. What would it mean for south africa to nationalise the mines.

The impact of the proposed nationalisation of south african mines on employment in the platinum sector ii abstract many forums have been recently organised in south africa to discuss the level of state intervention in the minerals sector, the expropriation of private mining companies, and the transfer of mineral wealth to the people. These people solely believe in the failed capitalist system that states that the markets should be the sole determinants of the direction of south africas economy. Corporate media and the nationalisation of the economy in. Nationalisation of mines in south africa essay 34 words. Nationalization is the act of taking assets into state ownership. Dec 20, 2012 nationalisation of mines dead and buried. Historically, south africas mining industry has been at the heart of the. During the hosting of the cape town 2010 mining indaba he said the same, and the mines minster denied it. The minister of finance mr pravin gordhan stated on march 14, 2011, that nationalisation of south africas mines and other economic assets is not government policy.

I am not going into details, as the information is freely available online, but here is a list of state owned enterprises soes and their track record. This paper considers the case for nationalizing the local mining sector from an evidencebased perspective, which is derived from theoretical considerations and related to the known features of the south african mining sector and economy. Eskom bailouts, mismanagement, corruption, nepotism. Why south african government should not nationalise the. In south africa there has even been persistent talk of nationalisation. Until 2012, zambia was the largest copper producer in africa, but it has since been overtaken by the drc. The minister of finance mr pravin gordhan stated on march 14, 2011, that nationalisation of south africa s mines and other economic assets is not government policy. This means the most efficient number of firms in the industry is one. Chiles success in running nationalised mines is in no small part due to the fact that chilean mining schools have historically produced more than double south africas number of mining engineering graduates. The beneficiation strategy of south africa was not informed by this form of classification of sectors but merely by availability of minerals in south africa. This paper considers the case for nationalising the local mining sector from an. The deputy president of south africa kgalema motlanthe has told the bbc that the country will not be adopting a policy of nationalisation of mines.

Stats sa statistics south africa nationalizing south african mines. Nationalisation as a means to safeguard sovereignty. President jacob zuma has promised there will be greater state intervention and possibly strategic. How privatisation versus nationalisation debate is on a fast track to nowhere people want more than what is on offer with the now stale, mostly elitist and selfconstructed choice between. Oct 27, 20 these people solely believe in the failed capitalist system that states that the markets should be the sole determinants of the direction of south africas economy. Advantages of nationalisation currently in the postapartheid era, south africa hasnt achieved. This paper considers the case for nationalizing the local mining sector from. The national party, after being voted into power in 1948, began a policy of apartheid. Nationalisation in south africa a debate that will. Nationalisation and the perceived consequences for a gold mine.

A crtitical analysis of the proposed nationalisation of mines in south africa in light of south africa s international law obligations. What would happen to sa if mines were nationalised. Oligopolistic industries are good targets for nationalisation. This paper considers the case for nationalising the local mining sector from an evidencebased perspective. When it comes to nationalisation, there are plenty of advantages. Dec 18, 2012 south africa s government says it has ruled out wholesale nationalisation of the mining industry. South africas government says it has ruled out wholesale nationalisation of the mining industry. This is especially true in light of his most recent talkleft walkright statements concerning nationalisation of mines. Nationalization of south african mines would represent a read more. These spanishspeaking engineers are also less mobile than south african graduates in the english language dominated world of. The economic debate, which will probably form an integral part of the forthcoming political. The study is aimed at establishing whether the nationalisation of mines is worth pursuing or not, given south africas current political and economic landscape.

Nationalisation as a means to accumulation path in the south african economy. The study also investigates nationalisation from an international perspective and provides an. Why sa needs nationalisation by effled government economic. Advantages and disadvantages of nationalisation connectus.

Nationalisation of mines in south africa pdf, platinum mining in south africa is supported by the country possessing over 80% of the worlds platinum group metal. The nationalisation of zambian copper mines was in line with an overall economic policy of nationalisation based on socialist principles. Nationalisation of mines in south africa 3122 words. Nationalisation in the reasons to nationalise south africa.

This is because fixed costs are so high in creating a network of water pipes, there is no sense in having any competition. Corporate media and the nationalisation of the economy in south africa. Nationalization, or nationalisation, is the process of transforming private assets into public assets by bringing them under the public ownership of a national government or state. Nationalisation in south africa a debate that will persist. Apartheid in south africa favored the minority white race over the black majority. It is little surprise that the issues of nationalisation of south africas mines and how to accelerate land reform are expected to be contentious discussion points during the ruling ancs national. Many key industries nationalised were natural monopolies. Disadvantages of nationalising mining sector south africa. The pros and cons of south africa nationalizing its mines. Nationalisation in the reasons to nationalise south.

The c6x series jaw crushers is mainly used in many different industrial fields such as metallurgy, nonmetal ores, chemical, cement, construction, refractory material and ceramics, etc. Apartheid is defined as the development of separate races. Nationalisation to transform south africas unequal spatial development pattern. It is quite evident that the state has not got the necessary capital, skill and support to control the mines in south africa. By 1986 a noticeable decline in copper production resulted in the closure of many mining units and led to the implementation of a fiveyear plan to revive the company8. Kaunda announces nationalisation of copper mines south. Advantages and disadvantages of nationalising mines.

Under the union of south africa beginning in 1910, the british and the afrikaners ruled together. Policy implications of the nationalisation of mines in. Stan du plessis1 abstract nationalisation is high on the policy agenda in south africa. The new south african debate on nationalisation versus privati sation seems to be dominated tatives of the national union of mine workers num were very. How privatisation versus nationalisation debate is on a. How privatisation versus nationalisation debate is on a fast. Zambian president kenneth kaunda announces nationalisation of copper mining companies, key to zambias economy contributing over 50 percent of government revenue. Unpacking the implications of nationalising the reserve. The impact of the proposed nationalisation of south african. The south african mining sector hanns seidel foundation.

Nationalisation of mines, banks and strategic sectors of our economy as stated as one of the 7 nonnegotiable pillars of the eff remains more relevant now than ever before. However, with south africas low domestic savings rate, and its net consumer reputation, increased revenues would lead to an increase in spending and consumption, stimulate potential corruption, and furthermore induce. Nationalization is high on the policy agenda in south africa. This is great because it ensures that everyone in the economy can benefit, and the industries are all united. Nationalising south african mines stellenbosch university. Unpacking the implications of nationalising the reserve bank. As mentioned above, this is what south africa would aim to do with the implementation of nationalisation of the mines. Is the nationalisation of the south african mining industry a good. Jul 30, 2010 it is little surprise that the issues of nationalisation of south africa s mines and how to accelerate land reform are expected to be contentious discussion points during the ruling ancs national. Nationalisation of the mines in south africa economics essay.

For one, economically speaking, it ensures that a government can stay homogenized and the economy toptobottom can be nationalized. Privatisation is the fundamental policy of the anc and it will be implemented. Privatisation and nationalisation jeanpierre dupuis national accounts and financial statistics statistics directorate organisation for economic cooperation and development oecd paper presented at the fourth meeting of the task force on harmonization of public sector accounting tfhpsa hosted by the international monetary fund. The colour of class on the copper mines african advancement in to zambianization zambian papers institute for african studies jan 1972. This paper considers the case for nationalizing the local mining sector from an evidencebased perspective, which is derived from theoretical. Promoting beneficiation in south africa by mr roger baxter chief operating officer chamber of mines of south africa presentation to the parliamentary portfolio committee on,nationalisation of mines in south africa pdf.

Books or documents of nationalization of mines in south africa. Sep 28, 2012 chiles success in running nationalised mines is in no small part due to the fact that chilean mining schools have historically produced more than double south africas number of mining engineering graduates. The proposal to nationalise the south african mining industry has provoked heated and often uninformed. A critical marxist political economy approach by mandla j. A crtitical analysis of the proposed nationalisation of mines in south africa in light of south africas international law obligations. The impact of the proposed nationalisation of south.

Jun 23, 2010 nationalisation of african mines cnbcafrica. Nationalization usually refers to private assets or assets owned by lower levels of government, such as municipalities, being transferred to the state. This week the anc youth league leader, discussed the nationalising of sa mines by 2012. The south african mining industry primarily covers the area of activities from. South africas mines minister susan shabangu has emphasized the importance of foreign investment in south africa, a significant part of which is vested in the mining industry. Pdf nationalization and mining lessons from zambia. Zambian mining policy has travelled the path from assets being held by privately owned.

While threats of nationalisation loom large, reserve bank could keep same governor the eff wants the reserve bank nationalised but will lesetja kganyago get another term. The relevant evidence is derived from theoretical considerations and related to the known features of the south african mining sector and economy. The corollary is that nationalisation would give the government, as the major shareholder, control over central bank policy. Pdf a crtitical analysis of the proposed nationalisation. A crtitical analysis of the proposed nationalisation of mines. Until 2012 zambia was the largest copper producer in africa but it has since been overtaken by the drc zambian mining policy has travelled the path from assets being held by privately owned companies through nationalisation during the 1960s and back to private ownership again in 2000 limpitlaw 2011. Disadvantages of the nationalisation of mines are as follows. Nationalisation is high on the policy agenda in south africa.