South Africa's mineral resources minister has sought to allay fears over the possible nationalisation of the mining industry in the country.

Susan Shabangu said the demands for nationalisation of the Africa National Congress Youth League (ANCYL) could hurt the country.

Addressing a mine-nationalisation forum organised by The New Age daily newspaper in Johannesburg, she said the talk of nationalisation was "dangerous", reports Mining Weekly.

Her comments came after public enterprises minister Malusi Gigaba described the ANCYL demands as "reckless" and "cheap".

Ms Shabangu is now the third government minister to distance themselves from the discussions over making mining firms hand over ownership to the state.

She stressed that the proposals are not government policy, adding: "I am aware that the investors, and equally members and supporters of the ANC who want to see investments and jobs in the mining industry, will be disappointed because they want certainty and clarity."

The task, the minister argued, is to see how mining companies can use the country's vast mineral wealth to eliminate poverty.

She suggested that at present not enough was being done in respect of black empowerment programmes.

Source:

Mine nationalisation wrong, dangerous question to ask – Shabangu (02/08/11)

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