Anglo American CEO slams nationalisation

[miningmx.com] –THE experiences of other countries had demonstrated time and time again that nationalisation “simply does not work’ – that’s the view of Anglo American Corporation CEO Cynthia Carroll.

Addressing a meeting held on Wednesday evening at the Gordon Institute of Business Science in Johannesburg, Carroll said leading figures in the South African government had stated clearly that nationalisation was not the policy of South Africa and should never be the policy of the country.

“We completely support that position. Anglo American has had direct experience of nationalisation. Some 40 years ago the Zambian government nationalised the copper mines it owned in that country.

“The result was that decades of neglect of those mines followed. The private sector was invited back into the Zambian mining industry some 10 years ago and the industry is recovering but, even now, the copper mining industry there is producing at levels below those of 40 years ago.

“I believe the road ahead for South Africa should be to focus on the infrastructure that the country needs to maximise the development of its mineral wealth by providing the required railway and port capacity; meeting the country’s energy requirements and overcoming the challenges to meet its water supply requirements.

“South Africa has vast mineral resources and is ideally placed to benefit from them but the country cannot afford to miss out on the benefits from the next wave of economic growth as it did in the recent past “

Turning to the black economic empowerment (BEE) requirements of the Minerals and Petroleum Resources Development Act, Carroll said Anglo American “had embraced the challenge of transformation and had already achieved the target of 26% BEE ownership in its operations that was required by 2014.’

She added the group would continue to make further progress to meet the requirements of the revised Mining Charter.

On the question of whether the State should get involved as an investor in the mining sector through the creation of a state mining company, Carroll commented, “that is a matter for the South African government to decide”.

“All we would ask is that there be a level playing field for private business in the sector.’