Nationalisation of South Africa's mines has been deemed the "wrong medicine" to resolve the problems proponents hope it will address.

Chamber of Mines chief executive Bheki Sibiya explained that nationalisation is highly unlikely, although suggested that South Africa should not be afraid of talk of investment.

According to Mining Weekly, he told a junior coal conference in Johannesburg: "We should rather understand the cause for the call of nationalisation such as poverty, and resolve these problems.

"Nationalisation is the wrong medicine to a correct diagnosis and South African institutions such as the Chamber, the South African Mining Association and emerging miners need to work together and defeat the nationalisation debate."

Earlier this week, South Africa's ruling ANC party denied it is committed to nationalising mines, but said it is taking an "open-ended" approach to the issue.

Spokesperson Keith Khoza explained that nationalisation is "not a foregone conclusion", but that the ANC "are not opposed to nationalisation".

"We are saying it must be looked at as an option and if it is looked at as an option, we must see what is the best practice," he added.

Source:

Nationalisation highly improbable, says Chamber CEO (11/08/11)

ANC approach to nationalisation is 'open ended' (08/08/11)

© Adfero Ltd