[miningmx.com] — THE politics of a democracy is a messy business, and
the congresses of political parties, where the demands of grassroots-level members
must receive attention, are usually the messiest of all.
But there are limits. And these limits were exceeded at the ANC’s policy congress in
Midrand last week, just as they were exceeded at the party’s national executive
meeting in Durban in September 2010.
In Durban, the Julius Malema-faction ensured in advance that it was strongly
represented in the Economic Transformation Commission. During the discussions of
the minerals policy, they ensured that the issue of nationalisation was entered on the
agenda.
They also made sure that every speaker opposing nationalisation – including those
from the mining industry itself – was followed by a speaker from the ANC Youth
League who “neutralised’ the former’s arguments.
“It was a clearly planned strategy, which eventually resulted in nationalisation coming
on the table during the second-last evening of the general meeting,’ a senior delegate
later said.
This led to a fierce debate in the general meeting, during which Malema at one point
went on to the stage and took the microphone from the chairman, Jeff Radebe. To
bring some calm to proceedings, the ANC leadership agreed to have research done
into the desirability of nationalisation. The directive was to do a thorough investigation
into the state’s involvement in the mining industry. That this happened was a pity,
because since then the issue and uncertainty about nationalisation have been hanging
like a cloud over the country’s mining industry.
The ANC decision resulted in the so-called Sims (State Intervention in the Minerals
Sector) report, which was discussed at the party’s latest policy congress in Midrand.
It sets out the consequences of nationalisation in several countries, including how
virtually all nationalised industries in Africa were later privatised. The best-known and
most disastrous example is probably the copper mines that President Kenneth Kaunda
nationalised in Zambia during the 1960s.
Despite the recommendations of the Sims report that nationalisation is not a suitable
policy option for South Africa, there was again an emotional and extended debate at
last week’s policy conference. It was first fought out in the economic transformation
commission and late on Friday afternoon again in the closed general meeting.
“In the commission, a compromise was reached between the supporters and
opponents of nationalisation. It was agreed that nationalisation would be called a
broad policy option, but that it would definitely not be considered in the mining
industry,’ a participant in the commission meeting said.
When the report was submitted to the general meeting, it again resulted in fierce
debate. Two provinces, Limpopo and Mpumalanga, were in favour of nationalising the
mining industry.
During the debate, a member of the North-West delegation spoke and said that this
province was in favour of the nationalisation of mines being included in the resolutions
of the conference as a policy option and should be forwarded to the Manguang
conference for further discussion.
He was interrupted by other North-West delegates who forcibly took the microphone
from him. Eventually the general meeting was informed that the speaker was a
member of the Youth League and had no mandate to speak on behalf of the province.
A representative of the Eastern Cape also supported nationalisation on behalf of the
province. Just like the North-West speaker, he was silenced by the Eastern Cape
regional secretary, because he had no mandate. At least this time it wasn’t
necessarily to take the microphone from him forcibly.
In the end, the Sims report was accepted by the general meeting with a few
provisions. Nationalisation in the mining industry has therefore been rejected, but the
industry must prepare itself for other measures aimed at “increasing the industry’s
contribution to development’.
In brief, nationalisation is off the table – until next time.
It’s sad, but true, that the ANC policy congress made no change to the uncertainty
that investors have been struggling with since the Durban debacle in 2010. The party
leaders did their best to eliminate the doubt, but they couldn’t succeed in doing so,
because they could not enforce enough authority to reach a clear, unambiguous
resolution.
And the approaching national ANC congress in Mangaung in December will bring even
less certainty. President Jacob Zuma was given a telling blow in the rejection of his
second transition. He is still the favourite for the leadership, but he will have to watch
his step.
But even if someone else, like Deputy President Kgalema Motlanthe, is elected as the
new ANC president in Mangaung, it will not bring any greater certainty about property
rights in the mining industry.
The harm done by the Youth League in Durban will be with us for a long time. As long
as poverty, inequality and unemployment remain as bad as they are now, we are
going to be struggling with this.
