THIS MONKEY-MAN IS HEADING FOR SERIOUS TROUBLE. EVERY-TIME HE OPENS THAT CRATER UNDERNEATH HIS FLAT NOSE....HE TUNES HIS DESTRUCTION BUTTON ON MORE-AND-MORE!
Malema states his case on mining
May 26 2010 13:01 Troye Lund Print this article | Email article
Cape Town - A state-owned mining company has to be created as a precursor to nationalising the country's mines and mineral wealth, ANC Youth League president Julius Malema told parliament on Wednesday.
"All mineral rights should be transferred to the state-owned mining company which will from time to time make partnerships with private corporations, where the state will hold a minimum of 60% shares," Malema said at public hearings to explore issues around the creation of a state-owned mining group. "For the remainder of the 40%, the private companies should pay royalties and taxes."
Malema also called for a moratorium on the provision of mineral rights until the state mining group was up and running, and that the company should fall under the supervision of the department of mineral resources instead of the department of public enterprises.
"Nationalisation of mines will lead to greater local beneficiation, industrialisation, growth of the economy and jobs for the majority of our people," said Malema. He stressed strong accountability mechanisms are needed to ensure employees of the company did not redirect its resources for their own benefit.
He also argued government would never be able to achieve everything it had promised in terms of free education, housing and job creation if it relied solely on tax revenue.
While Malema stressed that the ANCYL was not approaching parliament as economists or mining experts, he said it was making the submission as political activists wanting to make an "intervention" that would bring about a "lasting solution in an economy that has failed to empower the majority of our people".
During the same hearing, the South African Mining Development Association (Samda) presented a detailed overview of the choices facing government regarding state-owned enterprises.
Samda chairperson Nchakha Maloyi said there were global examples of mining groups that were completely or partially state-owned.
He said the key difference between success and failure of any company – private or state-owned – was the way its resources and assets were managed.