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Nationalisation of mines

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masterblaster
Contributor
This threat of the possible nationalisation of mines could cause a major crash in resource share prices. Cosatu have come out in the press supporting it. Hope Shabangu and Zuma are telling the truth that this will not happen. Please comment
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17 REPLIES 17
john_1
Super Contributor
They will steal everything...given the chance
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john_1
Super Contributor
If you dont have a passport may I sugest that you get one.. and if you only have a green one may I suggest that you try apply for refugee status in the country of your choice ahead of time...that is absolutly inreadable... but it shows very clearly we are dealing with people with a mindset of a 13 year old...(all teenagers want the spoils of adulthood without any of the costs)
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Levitt
Regular Contributor
Quote from article : " To avoid suspension/cancellation of mining licences, mining companies are simply going to have to donate tens of billions of rands to BEE ". " For a decade or two, while (traditional) investors are expected to finance the mine build, and assume all the attendant risks, before even the hope of a dividend, BEE investors will be paid from day one, in return for not investing a cent." Sigh..
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striker
Super Contributor
.The ANC elite ,(through family members and smokescreens)have begun this with the hijacking of mineral rights - Zuma's son and the Imperial Crown Trading manouvere . No doubt other ANC bigwigs will want their slice,and the threat of nationalisation looms ominously over our mining sector. The lack of any forthright denial from the Govt. powers ,is cause for concern and destroying foreign investor confidence.
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striker
Super Contributor
..Sure Levitt- and that's the problem with their mentality - they all want freebies and handouts without lifting a finger.Incredibly they believe it's their right, and the White mans obligation !!!
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Levitt
Regular Contributor
Socialism : The long way to capitalism...
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Franksays
Frequent Contributor
Dont you think this is a deliberate attempt to weaken the Rand. Why all of a sudden this talk of nationalising everything? After all, Cosatu want a weak Rand. I personally dont think that it is in the govt's interest to nationalise mines since family members cannot profiteer as in the case of ICT. After all, can you steal from yourself?
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Not applicable
The real problem with mine nationalization is to figure out where the capital is going to come for mine development. Either our chinese (non-colonial!) friends will 'donate' or funding will have to take place from local sources. The only really viable access to capital we have is pension funds. So - the benefit will come to the mining wukkers, at the expense of hte general population, who will probably see their hard earned pension money poured down the proverbial toilet.
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Rams
Super Contributor
All that Masterblaster wants to know is whether mining shares are going to crash. No, because the market would have reacted by now, and not when the mines are nationalised. Anyway its a long process and will pass through maybe 4 changes in goverment, so don't leave just yet....
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john_1
Super Contributor
I have being giving this issue some thought over night and I have come to the conclution that we have entered a new area of transparency. This how ever is not a good thing in its self. Basically what is happening is this. The colonial mining powers of anglo,bhp etc are being undermined(literally) this includes the existing mines and future prospects in Africa in favour of a much more agressive force in Chinese using mining licence. The Chinese are not capitalist as we know and as a result the new mining charter is not a document about investors. This is about the understanding that a total shift in power in happenning on a global scale but most NB is being enginered behing the sense by of "friends" in china. The African elete are sinply making sure that they are the dirrect benificiaries of this huge power swing. Basically China need the raw materials and it is cheaper to "pay 25%" then to buy the stuff on the open market.
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GarethJ
Regular Contributor
Interesting thought... I was interested to hear on the news this morning that Zim is still insisting on a 51percent ownership of all new mining projects. Wonder if that's still a bargain?
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striker
Super Contributor
.. No wonder the country is scr&wed - who would risk a huge investment in Zim.on those terms,when there are other far more attractive countries invest in.
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Rams
Super Contributor
Remember guys, if the mines are nationalised, then we as taxpayers own it, not those colonialists from the North. So we share the profits and more importantly since we know nothing about mining, we will sink more money into those black holes.I say let those guys do the mining and goverment buys up all the mining shares!So taxpayers become the major share - holders .....
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Not applicable
Actually RAMS, government has a much much easier mechanism for making money - they sell the rights to mine in the country, and they tax the proceeds, and they stipulate your employment quotas, local spend, etc - and they don't have to invest a cent. Julius and the lads' sole argument for nationalization is to protect a select portion of the population (half of whom aren't even South African)
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masterblaster
Contributor
John you hit the nail on the head. Read http://af.reuters.com/article/topNews/idAFJOE68F0C820100916 Looks like this debates end game is to weeken the rand. Good news from London though our deputy-prez and Gordhan (finance minister)stated the nationalisation is NOT policy once again.
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Rams
Super Contributor
And remember getting rid of the Scorpions was also NOT policy at one stage
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