ANC plans to publish list of minerals it deems ‘strategic’
THE African National Congress (ANC) is to publish a list of minerals it wants declared “strategic” probably in September, says secretarygeneral Gwede Mantashe.
Strategic minerals would have conditions placed on their exploitation, exportation and sale.
The ANC also wants to ensure that the state-owned mining company prioritises investments in strategic minerals, which it is envisaged it would do through joint ventures with the private sector in a kind of free-carry system. In a normal free-carry arrangement the state would usually acquire its share of the venture for free.
In an interview after the ANC’s mid-year lekgotla, Mr Mantashe provided some details on the party’s resolution on the mining sector, which emerged from its policy conference last month.
The ANC had agreed that there should be “strategic and not wholesale nationalisation” of mineral resources, he said.
“In the resolution we talk of strategic nationalisation. What that means is the state taking an active interest in strategic minerals. Following our September national executive committee meeting, we will publish a list of minerals that we regard as strategic,” he said.
The definition of a “strategic mineral” is not completely clear as the ANC has not yet published the resolution from the conference.
The party’s research document on State Intervention into the Mining Sector (Sims) proposed that minerals that are considered a critical feedstock into the economy — such as coal and iron ore — should be designated strategic.
Strategic minerals, according to the Sims document, should be supplied at “reasonable prices”, implying a new regime of state price regulation over mineral resources.
Mr Mantashe said the definition in the Sims document was “a starting point” and could be elaborated upon. The main aims of designating a mineral strategic would be to secure domestic supply (as with coal) and to encourage exploitation of new resources and beneficiation.
In joint ventures where the state- owned mining company secured a free-carry, these would be limited to unexploited reserves that the company has prospected. The percentage of the free-carry would depend on the structure of the deal.
“There was some debate on whether we should set a percentage but we decided that should be done on the basis of evidence.”
The ANC policy also envisaged tying mining licence conditions to beneficiation. “For a foreign company it may become a condition that it has a beneficiation plant in SA.”