African Romance, a Government backed diamond-cutting and beneficiation company, is being liquidated. This is sad and hopefully a forensic audit will reveal the reasons and what can be done to avoid a similar scenario.
In stead of nationalising mines, I believe that this type of operation, where value is added to raw minerals and materials before exporting, is the way to go.
Nationalisation will add no value. In stead, it will destroy value and tarnish South Africa's image in the rest of the world. Already investors are turning away to more attractive and viable operations in other countries. Rating agencies have downgraded South Africa's rating due to poor political leadership and because of uncertainty due to cries for nationalisation. Jobs will be lost as a result with many people suffering.
In stead of exporting diamonds, gold, iron ore and other raw materials, we should create new industries where the raw materials can be converted into products that can be exported. This will create the much sought after jobs, but most importantly there is an opportunity to create skills and higher paid positions than just labouring in a mine to extract the minerals.