According to iafrica.com, the nature of state intervention in South Africa's mineral assets will be debated at next week's ANC policy conference in Midrand. The ANC will meet to discuss 13 policy documents ahead of its national conference in December. The policy decisions made at the policy conference will then be finalised at the national conference in Mangaung, Free State, in December, forming the basis for the ANC government's policies, and new - or amended - laws.
The ANC mining policy discussion document titled "Maximising the developmental impact of the people's mineral assets: state intervention in the minerals sector" - or Sims- found that nationalisation of mineral assets was not affordable, as it would cost just over R1 trillion to acquire a 100% stake in all mining companies. Nationalisation without compensation would require a change to the Constitution and would result in a catastrophic collapse of foreign investment and access to finance.
Instead, iafrica.com says, the study proposes state control through the introduction of a 50% "super tax", which kicks in only when an investor has made a reasonable return, so as not to deter investors. A forensic audit on the granting of all new order mining rights should be carried out and, if improperly awarded, these should be suspended. The document proposes that revenues from the "super tax" should be ploughed back into social and economic development, enabling growth and job creation.
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