South Africa’s loss
may just be Nigeria’s gain. Many mine operators in South Africa are
currently faced with the possibility of losing their mining titles, as
the government is planning to nationalise the mines and withdraw
existing operational rights.
This is part of the government’s plan to distribute the country’s wealth more among the majority black population.
Though the South
Africa’s minister of mineral resources, Susan Shabangu, assured
participants at the recent Indaba Mining conference in Cape Town that
the idea of mining nationalisation was “not an option”, as it would
result in huge losses in jobs, president of the Youth League of the
ruling African National Congress (ANC), Julius Malema, is reportedly
insisting on the policy as the “only solution” to the economic problems
faced by ordinary South Africans.
Already, Nigeria is reaching out to mine investors whose South African investment may be under threat.
Minister of Mines
and Steel Development, Musa Sada, who also participated in the
conference, said he discussed with several investors on the investment
opportunities available in Nigeria as a viable option should they
desire to look elsewhere. He also said some of the coal miners his team
discussed with included those interested in investing in coal
development as a source fuel for the country’s power sector.
Coal-to-power projects
“We had discussions
with about 13 different groups that are interested in investing in
coal-to-power development projects, apparently because of the interest
of the federal government in the development of the power sector. Some
of them are multinational companies that are currently making
significant contributions to the South African economy,” Mr. Sada said.
He said Nigeria is
prepared to accept such investors into the country. “The groups are
willing to come into the country to invest in the coal development on
agreed partnership terms for the local market, which means they would
be supplying fuel for other investors interested in running the power
plants,” he said.
Other groups the
minister said he and representatives of the departments of steel and
metallurgy geological survey held discussions with included investors
interested in understanding issues on community development agreements,
to avoid the experience in the oil producing communities of the Niger
Delta.
Attracting investors
Though he said
discussions are to continue when they visit the country, Mr. Sada
assured them that government is already taking steps to create a stable
operational environment that would attract investors to the country.
“Government is
determined to grow the mining sector as another source of revenue for
the country and to provide job opportunities for the teeming youth as
well as ensure that the sector regains the role it once played prior to
the country’s independence,” he said.
Identifying the
ongoing reforms in the sector as one of the steps government is taking,
the minister said the adoption of a national policy would give a clear
direction for the sustainable growth of the industry, while the
establishment of the Mining Cadastre office as an independent legal
business entity responsible for the administration of mineral titles
would be a confidence booster, as it would operate without any
political interference and ensure security of titles tenure.
“Government is
working towards establishing the solid minerals development fund with
the support of some international agencies, while it is putting in
place the regulatory framework to assure investors of the security of
their investment. Government is also interested in creating a solid
mineral sector that would contribute effectively to the development of
the country’s economy,” he said.
