South Africa’s biggest labor union said that the government should buy assets from willing sellers to create a state-owned mining company.

Mr Frans Baleni general secretary of National Union of Mineworkers said that such a company would provide the country with revenue and create jobs. He added that the government should follow the route it took in 2007 when diamond producer De Beers agreed to merge its Namaqualand mines with state gem company Alexkor.

Mr Baleni said that “What we have seen is a willing buyer and seller. There is nothing wrong with that.”

The Youth League of the ruling African National Congress and Congress of South African Trade Unions, of which the NUM is an affiliate have called for mines to be nationalized to preserve jobs after companies including Lonmin Plc and Anglo Platinum Ltd fired about 25,000 workers because of falling metal prices.

(Sourced from Bloomberg.net)