ANC to use Sims to discuss SA's mineral assets

The ANC mining policy discussion document titled "Maximising the developmental impact of the people's mineral assets: state intervention in the minerals sector" - or Sims- found that nationalisation of mineral assets was not affordable, as it would cost just over R1 trillion to acquire a 100% stake in all mining companies. Nationalisation without compensation would require a change to the Constitution and would result in a catastrophic collapse of foreign investment and access to finance.

Instead, iafrica.com says, the study proposes state control through the introduction of a 50% "super tax", which kicks in only when an investor has made a reasonable return, so as not to deter investors. A forensic audit on the granting of all new order mining rights should be carried out and, if improperly awarded, these should be suspended. The document proposes that revenues from the "super tax" should be ploughed back into social and economic development, enabling growth and job creation.

Read the full article on www.iafrica.com.