[miningmx] — THE recent global financial crisis has shown that more state
intervention
is needed in the mining industry, Deputy President Kgalema Motlanthe said on
Tuesday,
according to a Sapa report.
“Contrary to the view that there must be less state involvement in the economy, the
lessons from the recent economic and financial crises… [is] that more state
involvement is sought,” Motlanthe told the ninth international mining history congress
in
Johannesburg.
For this reason, the government endorsed the African Exploration Mining and Finance
Corporation (AEMFC), as the “nucleus” of a state-owned mining company.
It was through the AEMFC that the state could consolidate its participation in mining
and focus on ensuring the security of supply of minerals of strategic significance.
A state mining company would complement the resuscitation of the mining industry
as,
despite the industry’s potential, private sector exploration investment had steadily
declined since 1994, Motlanthe said.
