South African President Jacob Zuma on Saturday launched a state-owned mining company in a move to ensure greater state involvement in the economically vital sector. Zuma said the African Exploration Mining and Finance Corporation, currently a subsidiary of the Central Energy Fund, would serve as the state-run mining firm, under which all state interests in mining would be consolidated.
"The role of the state cannot merely be confined to that of a regulator. The state must actively participate in the mining industry to ensure that our national interest is protected and advanced," Zuma said during the launch, according to a copy of his speech. "Government policy on minerals and mining does not make provision for the nationalisation of mining assets, but it does not prevent the state from participating actively in mining, competing with other companies."
Radical elements within the ruling African National Congress have been pushing for nationalisation of mines, although most analysts see the establishment of a state miner as the limit of the government's involvement in the sector. Earlier this month, Mines Minister Susan Shabangu said nationalising of mines in the world's top platinum producer and a major supplier or gold and coal was "not the option."
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