Monday, July 13, 2009

South Africa and Nationalisation of Mines.

The Johannesburg skyline. Taken by de:Benutzer:Zakysant.

Think about nationalised companies.

90% of the world's oil is managed by national oil companies.

Of the 20 biggest oil firms, in terms of reserves of oil and gas, 16 are run by governments.

State-run Saudi Aramco has more than ten times the reserves that Exxon does.

Some politicians in South Africa would like the country's mines to be taken over by the government.

Can South Africa successfully nationalise its mines?

Can Egypt successfully manage the Suez Canal?

Britain's Anthony Eden thought not.

But he was wrong.

The Guardian, 13 July 2009, asks: Will South Africa reclaim its mines?

South Africa's mines provide half of its exports.

South Africa has gold, diamonds, platinum, copper, coal, rhodium and more.

The investment by the mining companies in South Africa is between £100-150bn.

The mining companies would claim to have expertise in engineering, management and marketing.

Some people might think that the South African government lacks the money to buy the mines and lacks the skills to run them efficiently.

The Unions and Julius Malema, the leader of the ANC Youth League, and Castro Ngobese of the Young Communists all want nationalisation.

Susan Shabangu, the minister for minerals, opposes nationalisation.

President Jacob Zuma has said he does not intend to nationalise the mines.

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