Nationalisation of Mines

1. Index
1. Index……………………………………………………………………………………………..1
2. Introduction……………………………………………………………………………………...2
3. Advantages of nationalising mines……………………………………………………………3
4. Disadvantages of nationalising mines………………………………………………………..5
4.1 Zambia………………………………………………………………………………..6
4.2 Venezuela…………………………………………………………………………….6
4.3 Botswana……………………………………………………………………………..7
5. State Owned Enterprises……………………………………………………………………...7
5.1 ESKOM……………………………………………………………………………….7
5.2 TRANSNET…………………………………………………………………………..8
5.3 SABC………………………………………………………………………………….8
6. Impact of nationalising mines………………………………………………………………….8
7. Conclusion………………………………………………………………………………………9
8. Bibliography………………………………………………………………………………….....10

2. Introduction
Great discussions have erupted in South Africa since the leader of the African National Congress Youth League (ANCYL), Julius Malema, suggested that the mining industry should be nationalised. According to David van Wyk the leader of the ANCYL did this to complete the vision of the Freedom Charter that was adopted at Kliptown in 1955. The Charter states that “The wealth of the country shall be shared among all who live in it.”(Van Wyk, 2010). Unfortunately it is not that easy to make such a statement and expect that it will be just approved by society. Malema has been met by much criticism from free marketers as well capitalists. Leaders of the South African Communist Party (SACP), Ben Turok and Jeremy Cronin, has also questioned this notion made by Malema (Van Wyk, 2010). Both the leaders of the SACP stated that the National Minerals and Petroleum Development Act brought the minerals under state control, which accordingly means that through the state ownership of the act share in the wealth of the South African Mining Industry. Malema responded so viciously to the SACP’s statement saying that he will defend the ANC against communist takeover with his life, which brings in question the real reason why the ruling party wants...