Nationalising mines a no-no, Cyril insists

Nationalising mines which do not comply with the mining charter is out of the question as it could result in a burden on the fiscus, President Cyril Ramaphosa says.

Answering questions by MPs in the National Assembly this afternoon, Ramaphosa said the Economic Freedom Fighters’ (EFF) suggestion that mines which don’t comply with the charter should be nationalised is tempting.

It is easy to think nationalising mining companies which make a lot of profit could increase state coffers but there is also a burden to capitalise the mines which should be considered, he said.

A mine could yield profits, but mines are subject to the prices of commodities and if these fall, money will have to come from the fiscus.

“You could be pouring money down the drain,” the president said.

He added there is a risk in pouring billions into “holes into the ground”.

Ramaphosa advised the EFF’s Mbuyiseni Ndlozi to talk to new Mineral Resources Minister Gwede Mantahe about mining, as he has been in the industry.

Meanwhile, he said a new Mining Charter would be drafted within the next three months, after the Chamber of Mines last month agreed to halt its court challenge against the reviewed charter.

A new Mining Charter must address the role that black South Africans and particularly women, should play in the industry, and mineworkers also need to be given a greater role in decision making.

“The South African mining industry needs to be attractive to investors through a Mining Charter that offers certainty, stability and has a clear transformational path,” Ramaphosa said.