The nationalisation of mines debate started "wrongly" and in the "wrong place", Congress of South African Trade Unions (Cosatu) secretary- general Zwelinzima Vavi said in Johannesburg on Tuesday.

"It has been narrowed... it does an injustice to an otherwise very necessary discussion about the role of the state in the economy," Vavi said at the launch of Cosatu's Strategy for a New Economic Growth Path document.

The ANCYL and its president, Julius Malema, have been calling for nationalisation of South African mines, and have pushed for the issue to be included in discussions at the ANC's upcoming national general council.

"If we can let the demagogues win the discussion, which is based on a singular, narrow focus on the mines, instead of looking at the state broadly and nationalisation broadly, then we can only give rise to the criticism that says... that all these people are interested in is to lay their hands on the mineral resources for accumulation," Vavi said, in a swipe at the league.

He said that an important discussion like nationalisation could therefore be discredited.

Cosatu, in its discussion document, proposed that nationalisation be looked at in the context of the strategic role that the State should play in key sectors of the economy.

"If you read the documents in relation to all the areas we propose the state must take a strategic interest in, they relate to the economy where there are existing monopolies which we need broken up," he said.

Cosatu believed that through State intervention, resources could be "liberated".

"In relation to the area of mining... we are not necessarily calling for nationalisation of all the mines in South Africa. We don't think that's a realistic proposal. But we do say that we need a State that can have a company that can intervene in the strategic minerals."

He said that the steel and platinum industries should be considered for state intervention. This had to be strategic and should not be aimed at complete ownership.

Vavi added that Cosatu had helped the ANCYL formulate its document on nationalisation.

However, the league "lose[s] the plot" in its "public articulation" of the drive.

He said that Cosatu would not "beat the youth league" for its stance on nationalisation.

"We must allow them to push so that the equilibrium, which is strategic intervention, can be reached," he said.

Cosatu's fiscal and monetary policy coordinator, Christopher Malikane, said South Africa needed a "mixed economy" with privately- and State-owned entities.

Strategic sectors where state intervention was necessary included mines, metals fabrication, petrochemicals, pharmaceuticals, forestry, construction and finance.

Cosatu's proposal included a State-owned bank, pharmaceutical company and construction company. Vavi said state-owned entities should be viewed in terms of the benefits for South African society as a whole, instead of "narrowly from an investors perspective".

"This is not a mad document, it is a well-considered document."

Cosatu's vision for South Africa's future growth included creating decent work, revising the tax system and monetary policy, boosting industrial development, promoting collective and public forms of ownership and developing the southern African region.

The growth path would address the "crisis" the country was facing, which centred on the widening gap between the rich and the poor.