South Africa Sets Up State Owned Mining Company

The African National Congress (ANC) demanded a state owned mining company way back in 2007 at its Polokwane conference. Now President Jacob Zuma has announced that the African Exploration Mining and Financing Corporation will become a full fledged state owned mining company.

It is currently a subsidiary of the Central Energy Fund. Collins Chabane a minister in the Presidency said that the corporation would be under the control of the Mineral Resources Minister Susan Shabangu.

The Youth League has been calling for nationalization of all South African mines and this may be seen as a measure to appease them. Head of the ANC Youth League Julius Malema has said time and again that the nationalization of mines is in line with the party’s Freedom Charter adopted in 1955.

In a resource rich nation like South Africa with its abundant platinum and manganese resources the nationalization of mines will help the economic welfare of the local citizen. However these views are not shared by the many multi national companies which have set up mining operations at considerable investment in the country.