Reuters reported that South Africa wants to impose export curbs on minerals such as platinum and iron ore as part of a drive by the ruling African National Congress to create more jobs in industry in the continent's biggest economy.
The policy proposals from the Trade and Industry Ministry are meant to encourage more processing of minerals domestically but are unlikely to go down well with mining companies already being threatened with windfall taxes on their profits.
Speaking on the sidelines of an ANC conference in the central city of Bloemfontein, ministry director general Mr Lionel October said that firms would only be required to set aside small amounts for sale locally at an unspecified discount.
Mr Lionel said that "Our competitive advantage is access to the raw materials. That is why we must give access to the raw materials at developmental prices." He did not elaborate on the definition of small.
At the conference, which re-elected President Mr Jacob Zuma as party chief, the ANC has tried to strike a pro-business tone to counter a clamor for radical policy shifts from the millions of South African blacks who have seen little improvement in their lives since the end of apartheid in 1994.
The 100 year old liberation movement rejected wholesale nationalization of the mines championed by expelled ANC Youth League leader Mr Julius Malema but endorsed a resource rent tax that amounts to a windfall levy on mining firms.
An ANC policy document said that "The state must capture an equitable share of mineral resource rents and deploy them in the interests of long term economic growth, development and transformation."
It said that the government should consider export taxes on strategic minerals, reflecting the ANC's wish to expand the domestic factory sector to tackle the 25% unemployment rate that poses arguably the biggest threat to its 18 year grip on power. The party has faced increased popular protests against its failure to reduce poverty, deliver services and create jobs.
The ANC has talked for years about getting more value out of South Africa's vast mineral wealth, without much action. This led some analysts to downplay the impact of the policy document but they said it sent a worrying message to investors.
Mr Peter Leon, a mining expert at Johannesburg law firm Webber Wentzel said that "It looks like a very autarchic approach to the economy rather than an open one. It is interventionist and it is not going to encourage investment."
