Consolidate state mineral rights: NUM

I-Net Bridge | Mon, 15 Mar 2010 14:28

[miningmx.com] -- The National Union of Mineworkers at the weekend proposed that state mineral rights should be consolidated into a single state mining company so they could be of benefit to society.

In a statement issued on Sunday, the trade union condemned reports of the possible sale of state mineral rights by Limpopo Development Agency (LimDev).

"As per our resolution and in line with the Polokwane resolutions, the state must operationalise the state mining company for proper distribution of wealth as well as to ensure that development projects are better financed," said the NUM general secretary Frans Baleni.

The NUM called on the state to conduct an audit to determine which state entities have mineral rights and based on the results of such an audit, said the state should then consolidate all these rights into a single state mining company.

According to weekend newspaper and radio reports, LimDev is poised to sell its 40% stake in ASA Metals to a host of well-connected individuals, despite it being earmarked for the poor.

The deal, which is valued at R250m, has been linked to the most vocal proponent of the nationalisation of South Africa's mines, ANC Youth League president Julius Malema.

The other 60% of ASA Metals is owned by Sinosteel subsidiary, Eastern Asia Metals Investment Co from China.

ASA Metals owns a chromite mine and smelter near Steelpoort on the platinum- rich Eastern Bushveld Igneous Complex.

Several politically connected individuals - including Malema, soccer boss Irvin Khoza and Deputy President Kgalema Mothlante's son, Kgomotso - have been identified as the beneficiaries of the multi-million rand stake in the mining company.

Primedia's Eyewitness News said speculation is rife that the nationalisation campaign is intended to put pressure on Sinosteel - one of the largest trading companies in China - to relinquish its majority shareholding in ASA Metals.

"LimDev cannot be allowed to sell these rights on the eve of the operationalisation of the Polokwane resolutions," said Baleni.

The NUM said it was "highly disturbed" at reports that these rights would benefit politically connected individuals and therefore called on the state to intervene.