A report from the African National Congress (ANC) has advised against the nationalisation of South Africa's mining sector, Business Day reported, citing an as yet unpublished report from its research team.

The study is thought to argue that so-called "asset grabs" would be too expensive and unconstitutional.

Instead, mining companies, including the world's top platinum producers, will face higher royalties and steeper taxes, as well as "more beneficiation of raw materials and the introduction of higher taxes on exporters of unbeneficiated materials", the Johannesburg newspaper said.

The report is likely to be discussed at a meeting of the ANC's national executive committee this weekend, Business Day revealed.

A separate report from the ANC's economic transformation committee, which is also thought to favour greater beneficiation ahead of mine nationalisation, will also be up for discussion.

The ANC has previously said nationalisation, which is being pushed for by its youth wing, is not government policy.

ANC economic policy chief Enoch Godongwana told Business Day that creating a mineral beneficiation industry was the "stated policy of the ANC".

"Where technology allows, we should make sure that we add as much value as possible," he added.

Platinum producers are among those in South Africa's mining industry that have suggested talk about nationalisation is deterring investment in the sector.

Sources:

ANC study ‘advises against’ mine grabs (02/02/12)

ANC Study Rejects Nationalization of South Africa Mines, Business Day Says (02/02/12)

© Adfero Ltd