The debate about nationalisation of SA's mines is damaging investor confidence in the country and could hinder companies' ability to raise capital towards sustaining or growing production, Impala Platinum (Implats) CEO David Brown said yesterday. The reason for the call for nationalisation could stem from the failure of miners to have economic empowerment that benefited many, Mr Brown said at the Gordon Institute of Business Science. The industry has also failed to meet targets it agreed to in the Mining Charter, which outlines companies' empowerment, social and labour obligations to secure new-order mining and prospecting rights, he said. North American and European investors, which make up about half of Implats' share register, have expressed worry about the debate. "Vast amounts of capital are needed just to stand still, let alone grow. Therefore, if we start impacting on that flow of investment then we will see some significant issues around mining output from SA," he said. Implats has a R25bn capital expenditure programme in SA to replace about 500 000oz of platinum from older shafts that are reaching the end of their lives. "The Department of Mineral Resources must also enforce compliance," Mr Brown said. SA has introduced a royalty on mineral production and this will generate billions of rands in revenue. "What will the government (do) and what is it doing with these funds? We can be certain these funds are coming from the mining industry and there's an acceptance the mining industry is not doing enough. Well, we need to make sure these funds are spent appropriately so that people understand where those funds come from," Mr Brown said.
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