Economics

Nationalisation: a mining industry MIASA position on perspective state participation in mining

Report for the Mining Industries Association of Southern Africa

Gavin Keeton & Mike Beer

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July 2011

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Gavin Keeton is an Associate Professor in the Department of Economics and Economic History at Rhodes University. Mike Beer is an Independent Consultant who has taught at Wits University, worked at Standard Bank and has consulted widely on economic issues especially in Africa.

“Nationalisation: The acquisition of privately owned enterprises by a government, with or without compensation.” 2

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Routledge, (2002). Dictionary of Economics, Routledge, London.

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Table of Contents

Thumbnail sketches ........................................................................................................................ v A. NATIONALISATION: DEFINITION AND THEORETICAL CONSIDERATIONS ......... 1 Definition .................................................................................................................................... 1 Theoretical considerations .......................................................................................................... 1 Nationalisation today .................................................................................................................. 2 B. HISTORY OF NATIONALISATION AND LESSONS THERE FROM ............................. 4 Historical cycles of nationalisation ............................................................................................. 5 C. MINING AND NATIONALISATION .................................................................................. 7 Does the nature of the mining industry make it unsuitable for state ownership? ....................... 7 Alternatives to nationalisation .................................................................................................. 11 D. CASE STUDIES...