21 Aug.
Minister Shabangu says SA has lost out on foreign investment in the mining sector because the debate on nationalisation had scared away potential investors.
SA had lost out on foreign investment in the mining sector because the debate on nationalisation had scared away potential investors, Mineral Resources Minister Susan Shabangusaid yesterday.
This is not the first time Ms Shabangu has spoken out against the nationalisation debate, in the past earning the wrath of the African National Congress (ANC) Youth League.
Other ministers have also spoken against nationalisation. Public Enterprises Minister Malusi Gigaba conceded earlier this month that SA’s “reckless” nationalisation debate was deterring foreign investment.
Sticking to her guns yesterday, Ms Shabangu said having such a debate at a time when the world economy was in turmoil, and when there was intense global competition for investment, was inappropriate. The focus should rather be on resolving poverty, unemployment and inequality, she said during a briefing to the Cape Town Press Club.
While SA had been a potential destination for investment in the initial planning of investors, it had been dropped in favour of other mining jurisdictions because of the uncertainty over policy.
Ms Shabangu said where investment had taken place, it was of a short-term nature which enabled investors to withdraw in the event that circumstances dictated this in future.
“They are taking precautions so that if anything happens they can quickly pull (out) without major losses. It does cause problems and is a concern for us. What added to the uncertainty among investors was that the call for nationalisation was very broad and lacked specific content. No one knows what it contains.”
Ms Shabangu said the debate on nationalisation was taking place in an environment “where the balance of forces does not warrant such a focus. Instead, the balance of forces enjoins us to put into place programmes to resolve the evil triplets of poverty, unemployment and inequality.
“I am surprised that while globally there is a real concern about the state of the world economy, with all countries chasing investments to shore up their economies in a bid to drive growth and create sustainable jobs, we are grappling with a debate about nationalisation.”
The minister reiterated that nationalisation as called for by youth league president Julius Malema was not ANC policy.
Neither the ANC nor the government spoke on behalf of the other components of the congress alliance, and the proponents of nationalisation should likewise not project their own ideas as the views of the ANC, she said.
“The last time I checked, the ANC was perfectly capable of speaking for itself.”
At the same time, Ms Shabangu stressed that the mining industry had to embrace transformation and not be content to simply tick boxes to comply with targets of the Mining Charter.
The minister said one of the biggest challenges in the industry was to ensure equitable representation at all levels of the managerial hierarchy and not just in the human resources departments, as in the past.
She also expressed grave concern at the “carnage” in the industry in the area of mine health and safety.
The minister said her department had conducted a study which showed a correlation between high profitability in mining companies and a high incidence of accidents. “Where there is more profit , there is an increase in fatalities.”
Source: Business Day
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