While the ANC Youth League might have scored an early victory by persuading the ANC to put nationalisation high on the agenda of the party’s national general council (NGC) in September, it is unlikely that party leaders will buy into the league’s argument for the state to take over the mines.
A number of ANC leaders who have posted articles on the ANC’s website in the past months have objected strongly to the league’s call to nationalise mining and have warned that the move would be detrimental to the country’s economy.
Julius Malema, the league’s president, has repeatedly called for the nationalisation of the mines.
Floyd Shivambu, the league’s spokesperson, told the Mail & Guardian that the youth league, which will have its own national general council in August, would take nationalisation even further, taking over the banks and monopoly industries, such as steel, once the battle for the mines had been won. “When we speak of economic transformation we mean the total realisation of the Freedom Charter.
“The focus is now on the mines and then the banks and then the monopoly industries.”
Although President Jacob Zuma’s government has distanced itself from any nationalisation of the mines, Cosatu has come out in support of the idea. Instead of taking over mining ownership, some party leaders have argued for amendments to the Minerals and Petroleum Resources Development Act, which has ensured that the country’s mineral and petroleum resources belong to the people, with the state serving as a custodian.
Although Joel Netshitenzhe, an ANC national executive committee member, agrees with the league’s argument that the mining industry could play a larger role in improving the country’s fiscal capacity, he has questioned whether nationalisation would be the best way to deal with weaknesses in the country and the optimisation of job opportunities.
“The ANC has adopted an approach to state ownership of the means of production based on weighing the balance of evidence in particular cases.
“This is different from an earlier interpretation of the Freedom Charter, which posited nationalisation of mines, banks and monopoly industries as a given for a national democratic society,” he argues.
The league’s NGC, due to be held in Midrand from August 24 to 27, will see about 3000 delegates debating the issue of nationalisation.
The league is expected to adopt a resolution at its council calling for the establishment of a state-owned mining company, which will be the custodian of all state interests in mining.