nuclear-news

Mining nationalisation threat is real, says government adviser, MATT CHAMBERS, THE AUSTRALIAN, September 01, 2011 A SENIOR South African government adviser says investor worries about nationalisation of the mining industry are justified.

Sandile Noxgina, a former director-general of mines and now adviser to Mines Minister Susan Shabangu, said it would take almost a year for the African National Congress government to decide on nationalisation.

Some have played down talk of nationalisation, which is supported by the hardline ANC Youth League, but Mr Noxgina disagrees.

The concern “is justified”, he said yesterday at the Africa Downunder mining conference in Perth.

“As long as the debate continues and as long as it is not clear what the ultimate outcome of this process is going to be, I believe that there will always be some concern.”

The powerful youth league is reportedly clashing with congress elders over calls for nationalisation of resources and banks….

Existing government policy was to encourage private participation in the industry, with the state playing a regulatory role.

However, he said he could not guarantee that would be the policy after July…..

Uranium prices and stocks have been hammered since the March earthquake damaged Japan’s Fukushima reactors.

Paladin shares have lost about 60 per cent since the earthquake, but its market value remains higher than that of Rio Tinto’s listed uranium subsidiary, Energy Resources of Australia, which has been battling production problems.

Mr Borshoff, who has operations in Namibia and Malawi, said he was not concerned about the prospect of BHP Billiton flooding the market with its huge planned Olympic Dam expansion in South Australia…