Chasing myths no path to development
There has been a longstanding belief in South Africa that South Africa’s wealth lies beneath its soil, in the bounty of its minerals. For over a century it played an important role in the country’s political mythology. The idea that the mining industry plundered the country’s wealth and enslaved the labour of its working people was seized upon by nationalists of various stripes. It has remerged today in demands for nationalisation to fund expanded state spending.
Whether the industry’s detractors have directed their condemnations at ‘Hoggenheimer’ or at ‘white monopoly capital’, the idea has remained constant: enormous sums of money are to be had in mining, if only the greed and venality of the mining houses and their investors could be moved aside. Cut out the middle-man and the profit-monger – redirect those ‘super-profits’ – and all of this can be funnelled directly into our common development. Most recently, student activists have latched onto this as the route to financing tertiary education.
So what are we waiting for?
Leaving aside the disruption on the that seizing South Africa’s mining industry – or transferring it to the ownership of ‘the people as a whole’ – would have, it is far from certain that the payoffs would be anything like what its proponents expect.
PWC’s recently published report on the state of the industry – SA Mine – makes for uncomfortable reading. A survey of 31 of the largest companies operating in South Africa, it reveals a highly stressed industry.