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ANCYL deputy president Ronald Lamola talks to ANCYL president Julius Malema

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The ANC Youth League has rejected the research report on the nationalisation of mines, its deputy president Ronald Lamola said on Thursday.

“It (the report) did not do what the NGC (ANC national general council) said should be done,” Lamola told reporters at Luthuli House in Joburg.

“We will soon compile concrete facts and data on how the many countries that have nationalised their strategic sectors of the economy generate additional income into the fiscus and utilise it for the development of the people.”

The report on possible reform of the mining sector was presented to the ANC's national executive committee at its meeting in Pretoria earlier this month.

The City Press newspaper published details of the report after claiming to have seen it. It said there were two proposals for new mining taxes. One was a 50 percent tax on the sale of mining rights to prevent speculation. The other was a tax of up to 50 percent on so-called “super profits”, defined as anything more than a 22 percent return on investment.

The report proposes a reduction in the royalty tax from four percent to one percent.

Mineral governance could be overseen by a new “super ministry”, namely the combined departments of trade and industry, public enterprises, mineral resources, and science and technology.

According to the newspaper, the task team recommended that the ANC investigate state control of mines “in terms of rent share, growth and development, and make targeted interventions to achieve such outcomes”.

The team visited 13 countries to investigate mining models and best practices that would be viable for South Africa.

Lamola said: “The research report on the state intervention in the minerals sector... does not in any way respond to the ideological and political directive of the ANC national general council.”

He said that according to the resolution from the ANC's NGC there was “greater consensus” within the party on the nationalisation of mines and other strategic sectors of the economy.

ANCYL treasurer general Pule Mabe on Thursday said the league would gather more facts so it could argue its case for the nationalisation of mines at the ANC's policy conference in June. – Sapa