The National Union of Mineworkers (NUM) does not support the wholesale or blanket nationalisation of South Africa’s mines, it said on Wednesday.
In a statement after releasing its final position paper on nationalisation, the union said it preferred the model based on strategic equity.
“In terms of this model, a state mining company should be operationalised and used as a government vehicle to invest only in strategic minerals such as platinum, coal, uranium, iron ore and manganese.”
The NUM believed that with the development and implementation of a beneficiation and mining strategy, the country could use platinum to develop more capacity on the manufacturing of component parts for cars and jet engines.
“The country could also nationalise iron-ore mines and ArcelorMittal South Africa to mitigate and cushion steel prices, which would be beneficial in South Africa’s industrialisation programme,” the NUM said.
“Thus, our preference is that our nationalisation model should encompass a majority shareholding position of 50% plus one and the establishment of joint ventures or partnerships of 25% equity plus one share,” said NUM parliamentary affairs head Madoda Sambatha.
The NUM further envisaged broad-based ownership for historically disadvantaged groups through dedicated mining unit trusts or employee share ownership programmes as enshrined in the mining charter.
The NUM argued that proceeds from such mining activities by the state should then be ring-fenced for education (20%), health (20%), rural development (20%) as well as re-investment into the state mining company (40%).
“The significant difference between the NUM perspective and the ANC Youth League’s is based on the premise that the NUM wants the ANC to take a resolution on nationalisation as an economic policy option of both the ANC and the government.”
This would ensure that the ANC was not faced with a challenge in the future wherein it would have to make sectoral nationalisation resolutions.
The NUM also differed on the property clause.
“The amendment to this clause should also not be specific to the mines but rather broad to include other monopoly industries.”
This would ensure that in the future the state did not have to alter legislation to implement expropriation for each sector, the NUM said. — Sapa