ANC, mining minster clash over nationalisation

[marine1]

http://www.ewn.co.za/articleprog.aspx?id=58984

Seems that nationalisation is going to eventually happen.
Are we on the way to some form of communism here? This and the media bill etc etc etc
Yes Cynthia, seems your beloved ANC are not in agreement with you anymore
Was Juliass right?
Local News | Cape Town



The nationalisation of the country’s mines has been centre stage at the international mining indaba in Cape Town.

The ANC said Anglo American Chief Executive Cynthia Carrol was pre-emptive to claim that nationalising South Africa’s mines would be the road to ruin.

The ANC Youth League has been pushing for the mines to be nationalised.

ANC Secretary-General Gwede Mantashe said Carrol’s comments do not makes sense.

However, speaking on the sidelines of the same conference, Mineral Resources Minister Susan Shabangu said she was still opposed to the nationalisation of mines.

Speaking on the World at Six, Business Day’s Allan Seccombe said there was no clarity on the matter.

He said nationalisation was not the main concern at the conference.

“I think the clarity comes out next year after the ANC has decided which way it’s going to go on this policy as a government…”

However, he said nationalisation is not the main concern.

“Talk in the corridor is not too much about this, it’s more about the state of the industry, which is doing extremely well at the moment…” Seccombe said. “Commodity prices are soaring, everyone is doing well.”

 

[diesel]

There are already too many top ANC cronies involved in the mining industry, behind every mining right/license is a black empowerment partner with contacts in high places. To nationalise the mines would mean they would loose their profits so i reckon its highly unlikely this will go through as proposed.

 

[satanboy]

What is a mining minster?

 

[R13...]

There are already too many top ANC cronies involved in the mining industry, behind every mining right/license is a black empowerment partner with contacts in high places. To nationalise the mines would mean they would loose their profits so i reckon its highly unlikely this will go through as proposed.

Quite the contrary actually, there's lots of failing empowerment companies that stand to benefit from nationalisation (when they get bought out). That's the lobby behind Malema. It's just that most of us here are dismal at politics, but you must realise that in the end all ANC cdes are looking out for their own hides! They can't be seen to be against something that could make or break them in 2012!

 

[oober]

What is a mining minster?

A minster that undermines the good intentions of her fellow cronies?

 

[Mila]

I think they should skip going to army and send the whole bunch to an economy class... oh wait you have to understand more than Pedi for that to work...

 

[blunomore]

If they are nationalised, the government will make a mess of the mines - just like they made of every parastatal they ever touched!!!

Furthermore, currently the (privately owned) mines are already doing VERY little for the communities on whose land they are mining, as well as for the surrounding communities, whose labour gets used on the mines. A lot of the communities who are the land owners of the mining land get shafted in a big way by these companies - they are ruthless!!

If mines are nationalised, government is not likely to treat them any better IMO.

 

[Mila]

If they are nationalised, the government will make a mess of the mines - just like they made of every parastatal they ever touched!!!

Furthermore, currently the (privately owned) mines are already doing VERY little for the communities on whose land they are mining, as well as for the surrounding communities, whose labour gets used on the mines. A lot of the communities who are the land owners of the mining land get shafted in a big way by these companies - they are ruthless!!

If mines are nationalised, government is not likely to treat them any better IMO.

+10

Anglo plat actually does a bit.
( a lady phoned to the radio a few months ago when The village idiot was on about this.)

In the north west
They built schools houses and have community projects, sponsor athletics and donates money does the education of adult thing.
( not too sure people that work there can probably tell us if it if this is true )

The one here in the east rand belonging to the Mandela’s and their cronies does not even pay salaries though. So I guess one tries and fat cats come and stuff it up on the other side.

 

[DigitalSoldier]

Sorry but that is BS! The mines are doing a lot for surrounding environment.

If they are nationalised, the government will make a mess of the mines - just like they made of every parastatal they ever touched!!!

Furthermore, currently the (privately owned) mines are already doing VERY little for the communities on whose land they are mining, as well as for the surrounding communities, whose labour gets used on the mines. A lot of the communities who are the land owners of the mining land get shafted in a big way by these companies - they are ruthless!!

If mines are nationalised, government is not likely to treat them any better IMO.

Sent from my HTC Desire using MyBroadband Android App

 

[Nerfherder]

Seems that nationalisation is going to eventually happen.
Are we on the way to some form of communism here?

No, plenty of capitalist governements have nationalised mines.

 

[Nom Chompsky]

Marine... Anglo have have significantly reduced their exposure in South Africa over the years due to all the potential k@k that the ANC could do. Unfortunately for them, however, is I read 40% of their operating profit still comes from South Africa.

 

[dlk001]

Marine... Anglo have have significantly reduced their exposure in South Africa over the years due to all the potential k@k that the ANC could do. Unfortunately for them, however, is I read 40% of their operating profit still comes from South Africa.

Besides Gold Mining (a sunset industry that's becoming a safety and environmental liability), in which other commodities has Anglo reduced their exposure?

 

[Nom Chompsky]

Besides Gold Mining (a sunset industry that's becoming a safety and environmental liability), in which other commodities has Anglo reduced their exposure?

Hmmm...I've tried searching Google and nothing really came up on the commodities. However, I think what I was referring to was that Anglo have been selling off lots of non-core assets in South African companies. But I suppose one could argue that is a company decision/strategy rather than reflecting on South Africa.

Analysts surveyed by the Financial Times ranked South African risk as the most serious drag on Anglo’s performance, ahead of delays it faces in delivering Minas Rio, a large iron ore project in Brazil.

 

[blunomore]

Sorry but that is BS! The mines are doing a lot for surrounding environment.

You are wrong. Or maybe your concept of "a lot" differs from mine. My standards are pretty high, you know

1. My better half's partner in their law firm is busy negotiating with company X, who is mining on land belonging to the Y tribe/clan. The company offered them a pathetic amount to lease the land, as well as an even more pathetic monthly payment for the discomfort and disruption of their lives (mining has quite a huge impact on the surrounding environment, as you may know). So they lawyer is busy helping them to get a better deal. They will hopefully get shares in the mining company, which is fair and worth their while, much more than being paid a pittance.This particular tribe/clan also has other land on which other companies are mining and the situation is the same there. Do not be fooled by what is on the surface !

2. One of the specialities of our own consulting businesses is helping mining companies to implement CSI. OUT OF EXPERIENCE I am telling you that some of them have no clue how to implement CSI and basically just throw a few thousand rand at a problem, without ensuring that their projects are sustainable, etc. The majority of mine management is unable to establish a decent, long lasting relationship with the local communities - they just do not have the people skills. They are there to make a profit, remember?

3. We are involved in a company doing rehabilitation of abandoned mines and the surrounding communities. Once a mine has run its lifespan, a lot of mining companies simply abandon it and move on to the next one without thinking of the community they raped of their resources and how that community now has to cope once the mining has stopped.

 

[techead]

the fundamental bottom line here is that humans are selfish, that in conjunction with the inclination of self preservation.

nationalisation of the mines is going to do F all to aid the poor, create jobs, improve workers rights... like the ANCYL claim. Do you honestly think they care?

the same story here as everything else. all aboard the gravy train to fatten the bank account as much as possible. yes this is already happening to a degree, but when it goes ANC controlled just imagine how much worse it will be.

this isnt about the good of the people, its about power/control/money which will lead to nothing good, i assure you.

 

[dlk001]

Hmmm...I've tried searching Google and nothing really came up on the commodities. However, I think what I was referring to was that Anglo have been selling off lots of non-core assets in South African companies. But I suppose one could argue that is a company decision/strategy rather than reflecting on South Africa.

+1 I also agree with you. I think Anglo's exposure and performance in SA will reduce for many reasons.

- Gold is a sunset industry. Life of Mine of most shafts is on the decline. Anglo will spend money on prospecting outside SA because it needs to increase its reverse/asset base to compete and remain in the BIG 5.

- Acquisitions. Anglo wants big, long term assets and last time that happened was Kumba. There is not much scope for Anglo in SA unless they go for assets belonging to Xstrata, BHP, Impala, Lonmin etc.

- Legislation. Old mining firms like Anglo are used to operate with less social, environmental, political and safety constraints. All these come at a cost given the already high costs of mining at depth. It means Anglo is likely to invest in other countries where it can reduce costs.

- Technical Skills. SA underground mining is technically challenging and there's push for more production. However, we not bringing in competent technical skills at the required pace.

- Political Uncertainty. As Cynthia said this week, mining companies want to plan ahead for 30 - 50 yrs. If government/unions keeps changing goal posts, Anglo will look somewhere else.