South Africa is set to split its state-run minerals company from its energy fund, it emerged yesterday (9th December).

The African Exploration Mining and Financing Corporation was originally established three years ago as part of the workings of the Central Energy Fund.

However, it has been confirmed that the Department of Mineral Resources and the Department of Energy will now oversee the separation of the unit.

"When that state mining company was set up, the intention was to expand the involvement of the state in the mining sector and therefore I think that objective will still remain," Collins Chabane, a minister in the presidency, told Bloomberg.

The ruling African National Congress party has long called for the nationalisation of the country's mines and will presumably welcome the additional government involvement.

South Africa is the world's largest platinum producer and currently accounts for about three-quarters of global supplies of the precious metal.

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South Africa to Expand Mining Role With State-Run Unit (09/12/10)

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