Mines debate 'not hurting investment'

There is no evidence that the debate about nationalising the mines is hurting investment, Mineral Resources Minister Susan Shabangu said.

"Based on feedback from various sources, including meetings during roadshows and promotional activities, there is no evidence that there is a trend of disinvestment [attributable] to the nationalisation debate," Shabangu said in a written reply to parliamentary questions.

The government has been at pains to assure investors that it will not nationalise the mines after claims by the ANC Youth League that to do so would improve the lives of the poor.

Other cabinet members have said the debate has undermined confidence and deterred investment.

Shabangu said mine nationalisation was not government policy.

Economists have said that nationalisation would bankrupt South Africa with the bill for taking over all mining companies equal to about two-thirds of GDP or twice the annual national budget.

Amending the laws to make possible the expropriation of shares for a fraction of their value would run foul of international investment guarantees and trigger a severe backlash against South Africa by its trading partners.

President Jacob Zuma on Tuesday said open debate in the ruling party about social and economic issues could not be stifled, and all views should be aired, no matter how controversial.

South Africa is the world's biggest platinum producer.