The Gauteng ANC plans to present a new policy that could see government forcing mining houses to sell shares similar to the Zimbabwe state-ownership model.

South Africa’s neighbour instituted a law in 2008 requiring foreign-owned firms, including mines and banks, to sell at least 51% of their stakes to indigenous Zimbabweans.

Mining charter review

In a move that could be construed as a subtle form of nationalisation, the proposal will call for the state to buy a 49% stake in mining companies, reported the Sunday Independent.

If successful it might see the review of the mining charter, which has a target of 26% black ownership by the end of this year.

State-owned bank

In addition to this, the party is also set to propose the formation of a state-owned bank that would fund black entrepreneurs and small, medium and micro enterprises (SMMEs).

These proposals are expected to be tabled next month at the ANC’s provincial conference.

This moves follows calls by the Economic Freedom Fighters’ (EFF) for radical economic reforms, including nationalisation of South Africa’s mines and banks.

Most transformed

Late last year the Chamber of Mines of SA said that the mining industry was the most transformed of all the country’s major industries.

According to the then outgoing president Mike Cutifani, the industry’s achievements on procurement from previously disadvantaged South Africans ranged from 39% to 67% on capital goods and services – against a target of 20% to 50%.

He said progress was being made across all pillars of the mining charter, ranging from ownership to housing and management transformation.

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