The radical Youth League of the ruling African National Congress is pushing for mine nationalization, unnerving investors in the world’s No. 1 platinum producer, but President Jacob Zuma’s government insists it is not government policy.

“The call for nationalization by elements within the ANC Youth League is to save the black economic empowerment elements in crisis, and not to address the interests of the workers and the poor,” Nzimande said at a strategy meeting of leaders affiliated to the Congress of South African Trade Unions (COSATU).

“Ten years from now, they will be calling for privatization, after the state has inherited the debt,” he added.

COSATU and the Communist Party were instrumental in Zuma’s rise to power but have been largely unimpressed by his indecisiveness and by corruption within his administration.

Political labels have been rendered topsy-turvy by struggles for spoils and power within the ANC. The Communists are opposed to nationalization, at least publicly, on the grounds it would promote cronyism without tackling poverty. Unions oppose it as they see it threatening investment and jobs. The Youth League’s drive for nationalization is seen steered in part by stealth-capitalists who could benefit from it.

The ANC elects a new leader next year and Zuma’s only chances of retaining the top post rests with the renewed support from his communist and union allies.

Zuma has alienated popular ANC Youth League leader Julius Malema and the millions of poor and disenchanted youngsters he represents by dismissing their drive to get nationalization accepted as government policy.

Sources in the ANC have said that Malema and the pro-business faction he represents, some who will benefit from nationalization, want Zuma replaced by a leader who will be more sympathetic to their demands which include seizing white-owned farms without compensation.

On Monday Zuma opened the four-day conference warning union leaders not to overstate their role and make undue demands. COSATU said that Zuma cannot take its support for granted and is likely to wring policy concessions in return for support.