Furthermore, the role of government in this process is relatively unclear. At the time of nationalisation, it was estimated that up to the romsley fault the estimated reserves were 22 million tonnes for the brooch coal, 10 million tonnes for the new mine coal and 15 million tonnes for the flying reed coal, making a total of 47 million tonnes. According to the charter the wealth of the country shall be shared among all who live in it. Advantages and disadvantages of nationalisation may 19, 2017 may 17, 2017 by editor in chief nationalism is one of the fastest rising trends in the world, but overall, there has been stiff resistance to this movement, but regardless there is good and bad regarding nationalisation. Nationalisation in south africa a debate that will. Nationalising south africas mining sector kopano seopela 608s2360 luyanda period 3 09. The nationalisation of the mining sector is an argumentative topic in our country at the moment. Nationalisation of mines in south africa essay 34 words. The anc has rejected mine nationalisation as an economic policy at the ruling partys elective conference in mangaung, free state. In fact, the freedom charter which states the mineral wealth below the soil, the banks. Bank nationalization has been one of the most popular topics in the financial industry recently.
Nationalisation was part of the economic policy under the rule of the national party. Sa could fall foul of world trade organisation bdlive, 14 february 2014. For example, after 1945, the labour government nationalised key industries, such as railways, steel and electricity. Pdf a crtitical analysis of the proposed nationalisation. Within eight months of his inauguration the promise had been fully carried out and in a manner, moreover, that can be described as. Even after nationalization, however, the mines were managed by contracted foreign. There are those who argue for, while others against, the proposal. Policy implications of the nationalisation of mines in.
What would it mean for south africa to nationalise the mines. As argued below, the nationalization of mines will not achieve any pressing social need, which renders that consideration irrelevant as far as the calculation of compensation is concerned 5. Nationalisation is the converse of privatisation there is a religion or cult that says that the answer is always to privatise the logic is people are more careful of their own money which sounds logi. From then on, a succession of different government. The 1960s nationalisation in zambia was in favour of the. This is especially true in light of his most recent talkleft walkright statements concerning nationalisation of mines, south africa is one of the worlds most. The mining industry is on the cusp of technoeconomic.
Nationalizing the mines could, in the short term, make south africans better off on the whole. Nationalisation of the mines in south africa economics essay. During the colonial era many indian banks were founded either by the presley states or by wealthy individuals. Nationalisation in the reasons to nationalise south africa. Nationalization of copper in chile and its international. Commissioner shall restore on his file such claim and shall deal with it in the manner specified in. Kobrin 1984 documents that in the last five decades. The primary aim of most of the banks was to cater financial needs of trade and industry in that locality. This paper considers the case for nationalizing the local mining sector from. This paper considers the case for nationalising the local mining sector from an. Released highlevel political statements indicating that australians deserve a share of mining returns. Pdf mining nationalization and privatization in peru and in chile. The management of the nationalized industry is complicated and unwieldy. Nationalisation is not the anc or government policy our policy is a mixed economy, zuma told the business and diplomatic community in cape town less than 12 hours after his state of the.
Nationalisation of mines in south africa 3122 words. As per the provisions in section 3 3 a iii of the coal mines nationalisation act, 1973, a company engaged in the following activities can do coal mining in india only for captive consumption. But let us humour the league for a moment and assume it succeeds in changing the ancs mind about nationalisation, gets over all. Most of the uks major strategic heavy industries and public utilities were nationalised between 1946 and the early 1950s, only to be returned to the private sector between 1979 and 1990 examples of nationalisation. What would happen to sa if mines were nationalised. There is little recent history of net subsidy or other direct support to the mining sector 4.
The argument was that the government would be able to run the industries in the best interests of society. Nationalising south africas mining sector economics. This ad may be called the cual mines nationalisation ac, 1973. In bolivia its 2006 nationalisation was in favour of the state oil and gas company, yacimientos petroliferos fiscales bolivianos ypfb in the drc it was in favour of gecamines. Nationalising south african mines stellenbosch university. The proposal to nationalise mines is a contentious issue in south africa. He refers to an opinion piece nationalization and mining. The nationalisation of mines in south africa is a costly, highrisk proposition that should be adopted only as a last resort, an independent panel of experts is reported to have concluded after a. Nationalisation and the perceived consequences for a gold mine. The coal industry nationalisation act of 1946 is an act of the parliament of the united kingdom.
Lonmin is a corrupt thieving company born out of colonial conquest which collaborated with the state, particularly cyril ramaphosa, to slaughter. Many have argued for and against nationalization without having complete and accurate information. Fin24 blogger sashan writes that once nationalised, mines chase away all the skills required to build the mines effectively. Maybe we should get clarity on what the nationalisation of mines would do for our country it a question of how able are we as a country to sustain what belong to us as south african. The subsequent economic policies of the zambian government. The former became roan consolidated mines ltd rcm and the latter became nchanga consolidated copper mines ltd nccm. Advantages and disadvantages of nationalisation connectus. Reprinted from the bulletin of the new york public library of may, 1920. Nationalisation is high on the policy agenda in south africa. This paper studies the cycles of nationalization and privatization in. Is the nationalisation of the south african mining industry a good. Nationalizing south africa mining will scare investors. Nationalisation of mines in south africa introduction the nationalizing of mines has been the ongoing debate in south africa, mainly between the mineral minister susan shabangu and the anc. I am certainly not a fan of julius malema but i have to say that he definitely has point on the fact that mines should be nationalised.
The aim of this dissertation is to cut through the political posturing and get to the fundamental question surrounding nationalisation of mines in south africa. Nationalisation, gold mine, mining sector, expropriation. Black first land first blf unequivocally calls for the nationalisation of mines. Bank nationalization in india indian banking history can be traced to 19th century.
Lessons from zambia daniel limpitla wrote about a year ago, saying it is most relevant. Wcml nationalisation of the mines 200 years of working. Resource nationalisation risks breaking global trade. Nationalisation in the reasons to nationalise south. The act established the national coal board which acted as the managing authority for coal mining activities. Disadvantages of nationalization or arguments against nationalization of industry.
No nationalisation of mines, resource rent tax instead article reuters 19 dec 2012 a draft policy document shows the anc has rejected calls to nationalise mines but supports a. Ghana chamber of mines ceo toni aubynn said that countrys donor aid had dried up after it was reclassified as a lowermiddleincome country, and this forced the government to impose higher taxes on mining companies. As argued below, the nationalization of mines will not achieve any pressing social need, which renders that consideration irrelevant as. Questions were answered based on a likert format, varying from strongly agree to. When there is foreign investing in a countrys mining industry there are surely risks to take into account, especially in the mining industry seeing that it is a capital intensive industry leon, 2010. The study investigates the proposed nationalisation of mines and probable policy implications for south africa. Binq mining mining equipment advantages and disadvantages of privatisation and nationalisation in south african mines. The nationalisation of mines in south africa is a discussion that has been debated in such an environment. Until 2012, zambia was the largest copper producer in africa, but it has since been overtaken by the drc. Advantages and disadvantages of nationalising mines. The zimbabwean government recently announced plans to partially nationalize the countrys mining sector after accusations that foreign companies were plundering the countrys resource wealth.
Free essays on nationalization of mines disadvantages through. It is getting increasingly expensive to be a mining company in africa as more and more nations sway towards nationalism, as a burning desire for control over natural resources. Disadvantages of nationalization or arguments against. Nationalisation of the mines the first statute to give the state some element of control over coal mining was the coal mines inspection act of 1850 which set up an inspectorate of coal mines. If ownership of the mines is turned over to the state, future profits and current assets of the industry could be used towards creating news jobs, and providing more state services for the betterment of the south african people. The african national congress anc government must start with mines that are firing workers, specifically lonmin.
Pdf the nationalization process of mining companies was a global issue from the beginning. Nationalisation would typically be in favour of a government agency or soe. Under the leadership of the anc, party officials began lobbying for the nationalisation of various industries. It received royal assent on 12 july 1946, and provided for the nationalisation of the entire british coal industry.
The nationalization of the chilean copper industry, commonly described as the chileanization of copper spanish. Zambian mining policy has travelled the path from assets being held by privately owned companies, through nationalisation during the 1960s, and back to private ownership again in 2000 limpitlaw, 2011. Nationalisation of the mines by hodges, frank, 18871947. In the year they were nationalized, the mines produced at least 720 000 t of copper and employed approximately 48,000 workers see figure 224. The national library of australias copies direct service lets you purchase higher quality, larger sized photocopies or electronic copies of newspapers pages clicking on the order now button below will open the ordering form in a new window which will. The nationalization of industry is not considered desirable on the following grounds. Be an act to provide for the acquisition and transfer of the right, title and interest of the owners in respect of the coal mines specified in the schedule with a view to re organising and reconstructing such coal mines so as to ensure the rational, co ordinated and scientific.