ANC

*ANC 4th National Policy Conference, June 2012, Recommendations*


/From Part 8, Economic Transformation & Rural Development and Land Reform/


*State Intervention in the Minerals Sector*


14. The SIMS report carries a number of policy recommendations concerning ownership and control that can be processed at the conference. The rest of the issues that the report raises can be dealt with at the NEC Lekgotla.

15. Commissions agreed that state intervention with a focus on beneficiation for industrialisation is urgently required in the minerals sector. In this context, the commissions engaged in robust yet comradely debate on the question of the nationalisation of mines and other sectors of the economy.

16. At the forefront of this intervention should be the strengthening of the recently created state mining company by consolidating state mining assets into a single institution. This state mining company will expand or contract depending on the balance of evidence, including by partnering with the private sector in strategic mining ventures.

17. There was also broad consensus around the following points:

 * Minerals belong to the people as a whole through state
   custodianship, and should be governed by the democratic
   developmental state in the interests of all South Africans.

 * Exploitation of minerals must optimise the developmental impact,
   especially job creation, across the economy. Mining must catalyse
   broader industrialisation through the realisation of all the
   potential backward and forward linkages, including much greater
   degree of beneficiation.

 * The state must capture an equitable share of mineral resource rents
   and deploy them in the interests of long-term economic growth,
   development and transformation.

 * Mining should create safe and decent work, and mineral extraction
   should not compromise local communities or the environment.

 * The state should develop strategies to identify and manage strategic
   minerals in the national interest. Instruments to support
   beneficiation and competitive pricing of these strategic resources
   include the use of targeted export taxes

 * Strategies should be identified to rapidly increase the supply of
   coal at competitive prices with the aim of containing energy costs.

 * There is a need to develop mineral knowledge linkages by encouraging
   youth to study science and engineering, and providing incentives for
   this including free education up to first year university level for
   these subjects.

 * We must also expand investment in research and development that
   contributes towards innovation that supports beneficiation.

 * Some of the recommendations contained in the SIMS report do not
   require consideration by conference but will be referred to NEC
   Legkotla for actioning because policy already exists.


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