Although still on the discussion table, this early, a proposal to implement changes into South Africa's mining industry that will pave the way for the imposition of a 50 per cent resource rent-tax has faced accelerating objections.

"We need proposals that will attract investment and create jobs so that everyone can share in the wealth of our mineral deposits," James Lorimer, Democratic Alliance MP, said in a statement.

SA Mines Minister Susan Shabangu is expected to deliver the opening speech tomorrow at the Mining Indaba conference tomorrow. Investors will surely bring up the subject of resource nationalism during the conference, and how its implementation could affect the policies of other African nations.

On Sunday, City Press reported that the African National Congress (ANC), South Africa's ruling party, essentially ruled out the proposed nationalization of SA's various mines - existing, on the pipeline and future - as it will put a pressure on the country's "fiscal sovereignty."

However, the alternative solutions contained in the highly anticipated ANC report to support SA's fiscal wealth could just the same make the country lose present and potential foreign investors, which include a 50 per cent tax on the sale of mining rights to prevent speculation; a windfall tax of up to 50 per cent on superprofits, defined as a return on investment of 22 per cent; and, a reduction in the royalty tax from 4 per cent to 1 per cent, the City Press report said.

Also included was the creation of a superministry by merging five ministries - trade and industry, mineral resources, public enterprises, economic development and science and technology - to oversee minerals governance; the nationalization of platinum assets, regarded as SA's sovereign resource, via "targeted interventions;" and, a rent share of mining rights, which is likely to include much greater state participation in the industry.

The report argued nationalizing SA's mines will incur expenses tantamount to $131 billion, a figure too costly for the government to shoulder, as the foreseen amount alreadyexceeds the entire government budget.

Still, the ANC's support of a super-tax on mining profits was reckless and would kill jobs and investment, Lorimer said, noting such a tax would create incentive for mines to under-report their profits and discourage initial investment in mines.

"Even the debate itself is discouraging investment at the expense of invaluable jobs."

The focus should be put on policies that made the mining and benefication industries more competitive, he stressed.

ANC introduced the study after Julius Malema, its youth wing leader, proposed that the SA government should take over mines and banks because the black majority is not being well represented and not obtaining enough benefit from them. SA is the world's biggest producer of platinum, chrome and manganese, as well as supplies coal to Europe and India-based power plants. In April 2010, Citigroup Inc. said the country's mineral resources stand at $2.5 trillion, the most of any nation.

Once adopted, the study will surely influence policy documents scheduled for discussion at a party conference in June. Final decisions on economic policy changes will be announced on December at its national conference.

According to a report by Ernst & Young, a total of 97 deals were done in 30 frontier nations in 2011. Of the 10 biggest M&A deals completed, seven were in Africa, the biggest being Barrick Gold's $C7.3 billion bid for Perth's Equinox Minerals.

The total value of deals in Africa in 2011 was $20.3 billion, up from $16.6 billion in 2010, and $3.3 billion in 2009.