South African government considering mine nationalization

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South Africa’s ruling party may institute some form of mine nationalization, a step that could throttle investments in the world’s biggest producer of platinum and chrome, according to a confidential report prepared for mining executives by a risk analyst.

A drive to seize mines, banks and land is being spearheaded by Julius Malema, 30, who won an uncontested second term as the leader of the youth league of the ruling African National Congress in June.

The ANC in November instituted a study into the viability of nationalization. The findings will be the “key political issue” in party leadership elections in December 2012, Claude Baissac, the Johannesburg-based founder of country- risk consultants Eunomix, wrote in the report.

Full story: South African mine CEOs warned by Eunomix that nationalization may happen