This issue of nationalization of mines must come to an end." Celebrate Freedom 
for the Rich"
The South African Students Congress notes that April 27 will mark 16 years 
since the watershed 1994 elections. We pay tribute to the working class of this 
country for its ceaseless struggle against apartheid and capitalism
 
CDA-Director:Sports,Arts and Culture
SASCO-Political Education Officer
E-SRC,Edgewood Campus:Chief-Whip
UKZN,Edgewood campus
Oakwood 13(tunnel)
Private Bag X 03
Ashley 
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071 091 5061
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>>> "Dominic.Tweedie" <[email protected]> 2010/05/31 07:43 AM >>>

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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




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