[miningmx.com] — NATIONALISED mines would have cost South African taxpayers R67bn in 2009, outgoing Chamber of Mines (COM) president and Exxaro Resources CEO Sipho Nkosi said on Tuesday.
“It is worth pointing out to the proponents of nationalisation that mines operate in a tough global environment which is not about the enormous accumulation of wealth,’ Nkosi said at the COM annual general meeting.
“It is a difficult industry. Nationalisation has never been a successful enduring business anywhere and has impoverished many countries.’
He said the total income of the country’s mining sector in 2009 amounted to R332bn. Total expenditure, including taxes, dividends and capital expenditure amounted to R399bn, representing a R67bn deficit. If taxes, dividends and capex were to be excluded, the industry would have posted a gross surplus of R20bn.
Nkosi welcomed the fact that both President Jacob Zuma and Mining Minister Susan Shabangu have stated publicly that nationalisation is not government policy.
He said while the issue remained as an agenda item for the ANC’s national conference in 2012, the chamber would participate “vigorously and constructively’ at any public debate that might take place on the issue.
