A new state-owned mining company is renewing questions about whether South Africa has long-term plans to nationalize the lucrative industry.
President Jacob Zuma will officially launch the company this weekend. The mining ministry says the company, known as the African Exploration Mining and Finance Corporation, will initially focus on ensuring the state-owned electricity utility has enough coal.
Alison Turner, a Panmure Gordon & Co. analyst, says mining investors worry the launch could be a step toward broader state ownership.
Mining minister Susan Shabangu says that while nationalization is not government policy, her African National Congress party is studying its feasibility. A final decision has been put off until the party's 2012 annual convention. - Sapa-AP