[miningmx.com] — THE ANC policy conference held in Midrand last
week failed to end uncertainty over policy and regulatory issues that the mining
industry was hoping would be put to bed, including the suggested tax on super
profits and miners’ responsibilities towards mineral enrichment.
In its only guidance on the matter, the ANC said the proposals contained in its State
Intervention in the Mineral Sector (Sims) research report have been accepted. The
report rejects the outright nationalisation of mines, but proposes a much bigger
interventionist role for the state in the industry.
“As far as lease income [income on super profits] is concerned, it was agreed that it
will be collected by means of tax instruments,’ said ANC Policy Head, Enoch
Godongwana. “What these instruments will be hasn’t been decided yet,’ he said.
In President Jacob Zuma’s closing address on Friday, which according to sources was
preceded by a debate on nationalisation, he used every possible opportunity to make
it clear that the business sector would be facing greater transformation demands.
He quoted figures showing that, 18 years after the first democratic election, gross
black ownership of market capitalisation on the JSE stood at only 6.8%, that only
16.9% of top management in companies was black and only 25.9% of senior
managers were black.
Godongwana said later that steel prices, which have dissatisfied government for
years, were not discussed. “We did have in-depth discussions about import-price
parity and finding ways for the competition authorities to oppose it,’ he said.
Coal as a strategic mineral was also discussed. “We did not propose that coal should
be discussed as a strategic mineral, but that the country should have adequate
access to coal before it is exported and that it should be available at lower than
international market prices. We will not pay import-parity prices for coal,’
Godongwana said.
The conference also had long discussions about youth unemployment. Several
proposals about the problem were made, including the creation of the work-seeker
allowance that Zuma mentioned at the opening and which also came up in one of
the discussion documents.
“We did not make any decisions about any of the proposals. What was decided was
the urgency of the problem. All the proposals will be discussed with youth
organisations and the labour movement. This includes a wage subsidy,’
Godongwana said.
– Sake24
