It has taken a long time for the ANC to give its answer on the question of nationalisation, and it is exactly the one that everybody expected. It is sad that foreign investment has been discouraged for a few years with idle chatter about nationalisation, when it was obvious that they would never come to such a decision and nor would it be feasible.

Amongst the reasons they gave for reaching this decision are exactly the arguments that were raised – that it would require changes to the Constitution and it would harm potential foreign and direct investment in South Africa, not to mention South Africa’s standing in the international business arena. Apparently, the cost of nationalising all of the mines would cost our country’s entire budget for one year and that also made it impossible. Of course, now the discussion will move to a rent resource tax and the activation of a State mining company. Where they are correct of course is that the current mining process, in terms of licences and exploration rights, needs to be examined fully, and attended to with great care so that you don’t get dubious reasons behind the awards of licences or rights.