Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > PM Bug > Mining

Like Tree2Likes
  • 1 Post By PMBug
  • 1 Post By DoChenRollingBearing

LinkBack Thread Tools
Old 11-15-2011, 06:48 AM   #1
Golden Cockroach
PMBug's Avatar
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,064
Liked: 2454 times
South African mines will *not* be nationalised

Quote :
Julius Malema, leader of South Africa's ANC Youth League, has been demanding the nationalisation of the country's mining sector for some time now. But the moderate faction of the ANC has been able to suspend Malema from office for the next five years. After Zimbabwe's President Mugabe decided to nationalise the country's mining industry, fears have been growing among investors that South Africa, the world's largest mining country, could follow Zimbabwe's steps.

During last week's summit of the Canadian-South African Chamber of Business, Bobby Godsell, former CEO of the mining giant AngloGold Ashanti, said that a nationalisation of the South African mining sector was highly improbable. Malema's suspension is relief for many investors, since his plans were hostile to business and a danger to the economic stability of the country. ...
Silver_Bug likes this.
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 11-15-2011, 08:26 AM   #2
Join Date: Oct 2011
Posts: 1,059
Liked: 459 times
This really isn't news and people that were selling based on this political rhetoric need to pay attention to what the charts are telling you. South Africans have been outperforming the rest of the gold space pretty substantially. They have a political elite in South Africa that is in bed with the mining industry. There was no way in hell they were going to nationalize their mines with those people in charge.

In 5 years though...
DSAbug is offline   Reply With Quote
Old 11-15-2011, 02:16 PM   #3
PM Bug Supporter
DoChenRollingBearing's Avatar
Join Date: Oct 2011
Location: SE USA
Posts: 1,275
Liked: 691 times
Foreign national governments don't have to nationalize the mines to greatly benefit even if the price of gold goes very high... FOFOA teaches us that they can TAX them instead, thus taking whatever "fair share" they can get away with and yet still keep the doors open to foreign investors.

For example, if gold goes to $5000, then the foreign national governments tax the gold production $2500 / oz. Gold goes to $55,000 (yes! please do!), they tax them $50,000 / oz.

I assume in the above examples that costs (fuel, etc.) do not go up nearly as much as the gold price does.
Silver_Bug likes this.
DoChenRollingBearing is offline   Reply With Quote
Old 01-07-2012, 11:31 AM   #4
Fly on the wall
Join Date: Dec 2011
Location: Geneva
Posts: 34
Liked: 7 times
This is of course a political decision, and we dont know how ANC internal power struggles will develop in the next 20-30 years. However, the best policy is NOT to nationalise the gold mines as they need foreign investment, expertise and technology transfer if they want to increase or even maintain current gold production.
South Africa experienced a precipitous gold production decline from reduced investment and a nationalisation will only speed this up. South African society needs the shot in the arm from gold exports so in the near term (10 years) it is highly unlikely they will nationalise gold mines. It is likely that as long as gold mines do not lose money, they will not be nationalised.

Last edited by Silver_Bug; 01-07-2012 at 11:06 PM. Reason: Spelling error
Silver_Bug is offline   Reply With Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

All times are GMT -5. The time now is 06:10 AM.

Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of copyright © 2011 - 2019 Measuring Up. All Rights Reserved.