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*NUM tables new plan for state mining*
*Florence de Vries, Business Report, Johannesburg, 31 May 2010*
The National Union of Mineworkers (NUM) on Friday challenged previous
proposals on the structure of a proposed state-owned mining firm.
And it said nationalisation of existing mines should remain on the agenda.
Addressing Parliament's portfolio committee on mining at the weekend,
NUM spokesman Madoda Sambatha said the union gave its full backing to
the establishment of a state-owned mining company and called for it to
be established by June next year.
Sambatha opposed the idea of the state owning the majority stake in the
company and said private investors, "irrespective of race or gender",
should hold 49 percent while the state held only 31 percent.
"A further 10 percent shareholding should be allocated to an employee
share ownership scheme and another 10 percent is to go to the community,
traditional authorities or worker co-operatives," said Sambatha.
ANC Youth League president Julius Malema last week proposed that the
state hold a minimum of 60 percent shares in the company and that
private corporations would hold the remaining 40 percent and be
responsible for the payment of royalties and taxes.
Matt Brenzel, a portfolio manager for Cadiz Asset Management, said NUM's
proposal appeared to favour private investors, but that "the state could
co-opt the other shareholders in a blocking move".
"It would also have to be established how the projects will be funded
and whether state resources will be utilised, because if the state chips
in the money, one has to wonder whether these resources could be better
utilised elsewhere.
"Interestingly, there might be private investors for whom the profit
motive is not that important, whereas security of supply is. China is a
vast consumer of resource products and might be less sensitive to the
profit argument, as long as its appetite is fed," he said.
Sambatha also said there was a need for a comprehensive mining strategy,
which he believed was not currently the case. "The National Planning
Commission, the Department of Mineral Resources, organised labour and
organised business should play the most active role in this regard."
*From:
http://www.busrep.co.za/index.php?fSectionId=561&fArticleId=3973162
<http://www.busrep.co.za/index.php?fSectionId=561&fArticleId=3973162>*
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