Mining Parastatal Needed
The Portfolio Committee on Mineral Resources says the country needs a State-owned company in the mining industry.
The Committee came up with this recommendation after an international study tour to Chile and Bolivia. The purpose of the visit was to learn about the establishment, legislative framework and management of mining companies owned by the South American states.
Submissions made by various stakeholders supported the formation of a State-owned enterprise. Committee member Adv Hendrik Schmidt did not support the establishing of a parastatal, saying government should rather tighten regulations within the mining industry.
Another Committee member, Mr Mzunani Sonto said: “The successful experiences in Chile give us hope as the Committee to possibly recommend to Parliament that a government entity could be a tool to deal with the triple challenges of poverty, unemployment and inequality in order to reduce these evils in our country.”
Members of the Committee agreed that the experiences in Chile and Bolivia differed.
Mr Sonto said it was important for the Committee to put forward a recommendation that would benefit the country.
During the discussions the Committee emphasized that the establishment of the State-owned company should be done through an Act of Parliament but that the entity should not receive preferential treatment from the government.
by Yoliswa Landu