The leader of the South African Communist Party has called for the nationalisation of petrochemical firm Sasol and Mittal Steel South Africa to ensure energy security.
The SACP is allied to the more centrist African National Congress but political analysts say it may decide to withdraw from the coalition that has ruled since the end of apartheid and run its own candidates in elections beginning in 2009.
Business Day newspaper said SACP general secretary Blade Nzimande told a party congress on Thursday it was absurd for resource-rich South Africa to be paying high prices for steel and oil produced in the country.
”Why do we have to pay not just import parity prices but as much as a 30% premium when compared to India and China for our own steel?,” Nzimande was quoted as saying. ”About 40% of our oil comes from Sasol, but we are paying international prices.”
He urged delegates to pass a resolution calling on the state to take control of the two companies.
South Africa’s ANC-led coalition axed its apartheid-era policy of nationalising mines and other industries when it came to power in 1994, but has since privatised only a handful of state-owned firms.
Both Sasol and Iscor — which is now majority-owned by global steel giant ArcelorMittal and called Mittal SA — were privatised under the apartheid government.
No one at the SACP could immediately be reached for comment. – Reuters