Julius Malema told COSAS students that the ANCYL objective with nationalization of mines is to put wealth and resources in the hands of the people. He continued to say that they would start with gold and platinum mines because they are the richest. He also acknowledged that he was not educated and did not always understand the intricacies of business and economics.
The Clown Prince, with this profound statement shows his immense grasp for business. The bankruptcy of Pamodzi the closing of DRD and the divestment of Anglo from Anglo Ashanti, coupled with the sharp decline in South African gold production, with South Africa going from the number one global gold producer to number four, over the last few years, are not indicative of the veritable money machine Malema is talking about. Maybe Julius in his zest to bring the nationalisation issue to a speedy conclusion, and flooded with demands for his time and hate-speech engagements and burdened with the task of protecting the president against counter-revolutionaries, overlooked some of the issues besetting the mining industry, particularly the gold mining industry.
As for platinum mines, outside the big four, there is a multitude of small platinum miners, unsustainable at realistic metal prices with a huge requirement for funding to bring them into production or to keep them alive.
What is interesting is that many of the small unsustainable and technically bankrupt mines have a big BEE component. These mines have become bottomless pits, swallowing vast amounts of money whilst delivering very little other than promises. The only return on investment in these companies are speculative profits derived fro share trading and the chances of making money ranks with gambling at any of the many casinos that amply dots the surface of the South African landscape. Hiding money under a mattress has a better chance of yielding a dividend than many of these mines.
Given the above, I believe Mal(l)ema(n) is being put up to this by his BEE friends in the ANC.
Nationalisation of gold mines and some small, unprofitable and unsustainable Platinum mines will mean compensation for the owners. The state (taxpayer) will sit with a bunch of unprofitable mines whilst the compensated former owners and their agent, Malema who is having his palm greased, laughs all the way to the bank
Ever wondered why Zuma’s son and Mandela’s grandson would want to buy tired, exhausted and bankrupt gold mines?