Feb. 2 (Bloomberg) -- A study into mine nationalization commissioned by South Africa’s ruling African National Congress has recommended increasing taxes on mining companies rather than taking over the operations, a party official who has seen the document said.
The study is due to be discussed in a five-day meeting of the party’s decision-making body that began today, he said, declining to be identified because the document has not been released publicly. The ANC instituted the study after its youth wing leader, Julius Malema, proposed that the government take over the country’s mines and banks because the black majority isn’t deriving enough benefit from them.
South Africa is the world’s biggest producer of platinum, chrome and manganese and supplies coal to power plants in Europe and India. In April 2010 Citigroup Inc. valued the country’s mineral resources at $2.5 trillion, the most of any nation.
--Editors: Antony Sguazzin, Gordon Bell
To contact the reporter on this story: Franz Wild in Johannesburg at email@example.com
To contact the editor responsible for this story: Antony Sguazzin at firstname.lastname@example.org