Cape Town - Government has relocated a mining subsidiary to set up a state mining company, Collins Chabane the Minister in the Presidency responsible for Performance Monitoring and Evaluation announced today.
The African Exploration, Mining and Financing Corporation, which is currently a subsidiary of the Central Energy Fund (CEF), has been moved to the Department of Energy.
Briefing the media following yesterday's ordinary cabinet meeting, Chabane said the Department of Mineral Resources as well as the Department of Energy would develop modalities for separating the mining corporation from the CEF.
He said the mining corporation will constitute the nucleus for the state-owned mining company.
Chabane, however, emphasised that the mining company already existed: "The only thing we are doing is transferring it from the CEF to the Department of Mineral Resources so that it is able to function directly as a mining company of the state."
He said the state was presently involved in various mining activities through various companies that hold interests in mining companies.
"From the beginning when that state mining company (under the CEF) was set up the intention was to expand the involvement of the state in the mining sector and therefore that objective will still remain except that it will be moved from being managed from the CEF to being managed differently somewhere else," he said.
Meanwhile, government will also release the draft carbon tax policy approved by cabinet - pricing of carbon and three emission taxes: Direct tax, fossil-fuel tax and output tax applied to where fuel is burned.
Chabane said the draft policy, which would be published shortly for public comment, tables three carbon emission tax options for consideration, namely:
* A direct tax on actual measured emissions.
* A fossil fuel input tax based on carbon content of fuels.
* An output tax that could be applied to emitters where fuel is burnt.
Chabane said the New Growth Path had generated a lot of debate since it the Minister of Economic Development released the framework last month.
However, he added that South Africans still needed to forge a common vision through partnership.
The first meeting between the government, business and labour had taken place and that detailed discussions would be held with public agencies to align each agency's respective goals with the New Growth Path.
A Cabinet lekgotla to be held early next year is expected to debate what quick steps could be taken to advance the proposals contained in the New Growth Path.
Cabinet also approved a number of bills for public comment, these are: Employment Equity Amendment Bill, Basic Conditions of Employment Amendment Bill, the Labour Relations Amendment Bill, the Employment Services Bill and the Land Tenure Security Bill.
