Cape Town - Nationalising mines could result in a burden on the fiscus, said President Cyril Ramaphosa. He was answering questions from MPs in Parliament on Wednesday. Economic Freedom Fighters MP Mbuyiseni Ndlozi asked Ramaphosa about the nationalisation of mines.
Ramaphosa said it is tempting to think nationalising mining companies which make a lot of profit could bolster state coffers. But there is also a burden to capitalise the mines which should be considered, he explained. A mine could yield profits, but a mines are subject to commodities. If commodities tank, money will have to come from the fiscus, he explained. Ramaphosa said that the risks and dangers have to be examined. “You could be pouring money down the drain.”
He explained there is a risk in pouring billions into holes into the ground, and having to contend with volatile commodity prices.“Sometimes there are years of drought and years of boom. Mining in the most part can go bust or have great years of boom.” South Africa’s developmental state will be subject to those processes. Ramaphosa advised Ndlozi to do research on the matter and engage with people “who have experienced it”. He added that Ndlozi should talk to new Mineral Resources Minister Gwede Mantashe about mining, as he has been in the industry. “Mining is an industry that is not for sissies,” he conclude.
Personally I support President Cyril Ramaphosa, on the issue of being against the nationalization of Mines, it may benefit the state but also we may drawn in drought serious if we don't take this serious, we may lose billions, because we may not be able to manage them as they are managed now. The country's responsibilty is to monitor those only and make it a point that the stuff is treated fairly.
source: Lameez Omarjee
considering the challenges and risks that come from working as a mine worker the President's statement is true.. mining needs strong people who know what they want and why they are doing it.. we don't need cry babies digging our Gold.. Hence it is important for mine workers to be strong and determined.
ReplyDeleteNationalisation of mines is not good I support the President because it would create panic among foreign investors. The mining sector after nationalisation could take a very long time to boast a profit.
ReplyDeleteI also support the president on this one. We already have enough to manage that we aren't very well so this would be affect us negatively in the long run
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