Wednesday, 24 August 2011

Will South Africa be in chains if the government nationalize mines?

By: Tebele Karabo

The rulling party African National Congress(ANC) wants to nationalize all the mines in the country and this issue has led to the several arguments.

The ruling party wants to intervene its hand in the South African mine industriesn in order to develop a new mining strategy.

The ANCYL president Julius Malema, has led a campaign to partially nationalize new mines, with a state-owned mining company holding a minimum of 60 percent of new mining concessions. Mining generates 30 percent of South Africa’s export revenue, 18 percent of its corporate taxes and 500,000 direct jobs, according to the Mines Ministry.

Back there in South America in Venezuela when Hugo Chavez nationalize all the mining sectors, Venezuelan people thought it will benefit all of them in terms of job creation and better the lives of them all but to such an extent that Hugo after nationalizing the mines, it only benefitted him and people surround him.

The big question is " will the government keep its promise to better the lives of the South Africans or it will benefit themselves and people surround them"?

Only the time and place will tell but from my side I think our country will lead in chains if they nationalize the mines.....

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