ANC study rejects mines grab - report

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sox63

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If this report is true, Julius is not gonna be a happy chappie :D

Johannesburg - A study commissioned by the ANC has rejected calls for mine nationalisation and come out in favour of higher taxes and royalties, the Business Day newspaper reported on Thursday.


The report is expected to be adopted as policy by the ANC and will be raised this weekend at a meeting of the party’s National Executive Committee, the newspaper said, without saying where it got the information.


The report warns against “asset grabs” by the state because such a policy would be unconstitutional and because the government could also not afford to buy mining stakes, the newspaper said.


But the government will also recommend higher royalties and taxes, as well as policies to encourage the processing of raw minerals to add value, the paper said.


Talk of nationalising mines and banks by radical elements in the ANC has unnerved investors.


The policy drive for mine nationalisation lost political momentum after an ANC disciplinary committee found its biggest advocate, ANC youth league leader Julius Malema, guilty of sowing discord in the party.


The committee handed down a five-year suspension which Malema has appealed.


The ANC study on mine nationalisation was first submitted to the party leadership last year but had been sent back for redrafting to improve its presentation.
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So they gonna take a page out of the Australian book of doing things judging by this

http://www.fin24.com/Companies/Mining/ANC-study-rejects-mines-grab-report-20120202
 
Methinks higher taxes and "royalties" are what they were after in the first place.

They sit and do f all and the money rolls in whether the mine is profitable or not.
 
ghoti said:
About time they went the aussie way.
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I'm also slightly encouraged by the focus the downstream value chain also being promoted to be done in-country

But the government will also recommend higher royalties and taxes, as well as policies to encourage the processing of raw minerals to add value, the paper said.
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saksakgp said:
I'm thinking of writing a book titled, 'how one man with a big mouth managed to scare an entire race'
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I just think he bought a lot of dollars, started opening his mouth, sold them and then shut up :) Playing the FOREX like a pro.
 
alf101 said:
Methinks higher taxes and "royalties" are what they were after in the first place.

They sit and do f all and the money rolls in whether the mine is profitable or not.
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Exactly what I said when this nationalisation nonsense started. Typical ANC MO. They announce something totally, wildly insane, cause an outrage, then pretend to come to the rescue by lowering the demands and pretending to be reasonable, then hope the public will accept the slightly less insane solution to get more money that they have been planning all along. They did the same with the e-toll saga, the re-naming everything saga, and continue to do it regularly with the fuel price and electricity increases.

Also, as another poster pointed out at the time, this would get them the most money and the fewest problems. Running a mine is very hard wek. It's much better to let someone else actually take all the risk and do all the thinking. If the government is in charge and the thing flops leading to thousands of job losses, it's kind of difficult to blame white people/imperialists/colonialists/right-wing dark forces/apartheid/racism/dicsrimination/the past/the future/predecessors/aliens from the 7th dimension. Not that they wouldn't try, mind you, just that not as many people will believe it.
 
alf101 said:
Methinks higher taxes and "royalties" are what they were after in the first place.
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If they nationalised the mines it would have required work to be done on their part which they are allergic to.
 
ghoti said:
About time they went the aussie way.
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From what I've read, the aussie model isn't expected to be the success story that the [-]Rudd[/-] Gillard government has made it out to be. And their unions are already jumping up and down demanding their share

Some say that controversy surrounding the levies is the biggest reason that old Rudd was replaced, and since then some massive concessions have been negotiated between government and big business
 
ponder said:
If they nationalised the mines it would have required work to be done on their part which they are allergic to.
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Agreed. Just look at how well the SABC and Telkom are doing ;) They will get more tax and royalties if the mines remain privately owned.
 
ghoti said:
About time they went the aussie way.
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You mean a 30% "rent" tax that drives away investment? Besides, the situation in Australia is very different. For decades, mining companies paid lower a tax due to an antiquated piece of legislation regarding tax redistribution. That is not the case for South African mining companies. Regardless of this, most Aussie companies have already managed to financially model themselves out of paying a considerable portion of the MRRT which means that the government there has only made themselves more vulnerable to volatility in the commodities market.

Guaranteed our government will adopt the easy-money approach of imposing a flat, income-based taxation which will be ridiculous in a low-margin business. Stupid is as stupid does...
 
McSack said:
From what I've read, the aussie model isn't expected to be the success story that the [-]Rudd[/-] Gillard government has made it out to be. And their unions are already jumping up and down demanding their share

Some say that controversy surrounding the levies is the biggest reason that old Rudd was replaced, and since then some massive concessions have been negotiated between government and big business
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It was the reason why Rudd was replaced and their Labour Party went into a dizzy spin thereafter. The concessions were made because the lobbyists were correct: you cannot impose such a high taxation on a sector that contributes 50% of your GDP, especially in a time when markets are vulnerable...
 
Its quite interesting if you look at it from another POV, the ANC threatened with nationalisation, so when they decided just to raise taxes people would sigh with relief and just accept it.
 
WilD_CaT said:
Its quite interesting if you look at it from another POV, the ANC threatened with nationalisation, so when they decided just to raise taxes people would sigh with relief and just accept it.
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Is there an echo in here?
 
They will never get 50% tax out of the mines....

Do not underestimate how much power the mines hold over our government purely because they employ so many ppl and contribute so much to the economy.
 
B.O.F.H. said:
Do not underestimate how much power the mines hold over our government purely because they employ so many ppl and contribute so much to the economy.
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Do not underestimate how corrupt the ANC is and the lengths it will go to for money and power.
 
RisseN said:
According to this the proposal is for a 50% tax. Yes,...50%!!!!!!!!!

http://www.bloomberg.com/news/2012-...pose-s-african-mine-resource-rent-tax-1-.html

The ANC is a bunch of lazy thieving self important fools.
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Don't forget the proposed 50% CGT on mineral rights BEFORE mining operations begin, combined with the proposed elimination of the free market principles by legislating selling prices and attempting to curb exports. It's absolutely fscking ludicrous.

They want to legislate the following: higher input costs for the operators; higher distribution costs; higher processing costs; higher taxation; reduced interest in mineral rights acquisitions (so that they have first dibs through their own companies which they have already setup); lower margins; increased BEE requirements and as per a previous article, caps on EXCO remuneration.

This come straight out of the "How to kill an industry and alienate countries" handbook. Fscking communist, morons...
 
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