A study commissioned by South Africa’s ruling ANC has rebuffed calls for the nationalisation of mines, in Africa’s largest economy and the world’s fourth top diamond producer.
BusinessDay reports that ANC favoured higher taxes and royalties instead.
It noted that an export levy had been suggested, as a way to "ensure security of supply" of commodities.
“The ANC wanted incentives to encourage local beneficiation, meaning it would have to introduce taxes and penalties,” reads the report.
“There were, however, no specifics in the report on what incentives and taxes should be introduced, and the government will have to come up with these details.”
The paper noted that the report was expected to be adopted as policy by ANC.
The ANC study on mine nationalisation was first submitted to the party leadership last year but had been sent back for redrafting to improve its presentation.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
