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South Africa's NUM Miners Union Opposes `Blanket' Mine Nationalization
The National Union of Mineworkers, South Africa’s biggest labor union, opposes a “blanket” state takeover of the country’s mines while saying nationalization of ArcelorMittal South Africa Ltd. would help curb steel prices.
The nation should create a state mining company to invest in strategic minerals such as platinum, coal, uranium, iron ore and manganese, the Johannesburg-based union said on its website today. Government control of mines producing iron ore, used to make steel, would also restrain prices of the metal, it said.
The union’s position is at odds with the youth league of the ruling African National Congress, which in May called for state-ownership of all new mines, toning down a prior demand for appropriation of current projects as well. The NUM is part of the Congress of South African Trade Unions, which has supported the ANC at elections since the end of apartheid in 1994.
“The National Union of Mineworkers does not support blanket or wholesale nationalization of mines but prefers a model based on strategic fund/strategic equity,” the union said. “The country could also nationalize iron ore mines and ArcelorMittal to mitigate and cushion steel prices.”
The government should take a 50 percent plus one share stake in some mines and a 25 percent plus one share interest in others, the union said, without elaborating. Money raised should be spent on education, health and rural development with 40 percent of the earnings re-invested in the company, it said.
The government shouldn’t invest in gold mines because they are high cost and less profitable, NUM General Secretary Frans Baleni said on Johannesburg’s SAFM radio last week.
South Africa is the world’s biggest producer of platinum, chrome and manganese, and the largest producer of coal, iron ore and gold in Africa. Anglo American Plc is the biggest investor in mining in the country and the largest private employer. BHP Billiton Ltd., Rio Tinto Group and Xstrata Plc also have assets.
To contact the reporter on this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net
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