Although the report by the ANC commission investigating government intervention in the minerals sector dismisses the notion of full-scale nationalisation and President Zuma, according to media reports, declared on Friday morning that "nationalisation is not the ANC or government policy", there is no reason for complacency, trade union Solidarity today warned.
The trade union is concerned that nationalisation is being substituted for a "mixed economy", as the President put it, which is unfortunately in line with the trade union's prediction in a study undertaken last year that, at least in name and for the time being, nationalisation would be rejected. The trade union will release a report on the value of South Africa's private mining industry on Thursday.
According to Piet le Roux, senior economics researcher at the Solidarity Research Institute (SRI), Zuma's dismissal of nationalisation in favour of a so-called "mixed economy" is cause for concern about the future of the mining industry.
"Certainty about property rights is a cornerstone of a peaceful and prosperous society. What the President has in mind with a mixed economy undermines property rights and, therefore, poses a real threat to the prosperity of almost all South Africans.
"The present notion of a mixed economy is probably inspired by the growth achieved in recent times by former communist countries such as China, a growth that was seemingly state led. We are, however, concerned that the ANC and the President believe that such growth must be attributed to state intervention, while the improvement in those countries is actually the result of a decline in state intervention following their introduction of significant free market reforms from the late 1970s onwards."
According to Le Roux, it is not surprising that, in its draft report, the ANC commission tasked with investigating state intervention in the minerals sector (SIMS) rejects outright nationalisation.