ANC's Malema says mining firm in smear campaign

* Malema says he is victim of smear campaign

* Malema says plans legal action against newspapers

By Peroshni Govender

JOHANNESBURG, Feb 22 (Reuters) - Julius Malema, the leader of South Africa's African National Congress youth league, said on Monday mining companies and opponents within the ANC were spearheading a campaign to discredit him.

South African media have reported that Malema, who has been pushing for the nationalisation of the country's mines, used political contacts to win multi-million rand government infrastructure contracts. Malema has denied the reports.

"Those who own the means of production, mine owners in particular, and those who think the ANC Youth League will not support them for election and re-election into ANC leadership in 2012 have merged to discredit the leadership of the ANC Youth League," Malema told reporters at a press conference at ANC headquarters.

He did not name the mining groups.

Malema said he planned to take legal action against newspapers which reported he has earned millions of rands from municipal tenders in Limpopo province, in the north east.

Malema, whose support for President Jacob Zuma helped him win the ANC leadership in December 2008, said he could not have gained from political contacts since he had not enjoyed a good relationship with the previous Limpopo provincial leader in former President Thabo Mbeki's government.

"I did not benefit from anything. I got nothing," he said referring to a report in the Sunday Times newspaper that SGL Engineering Projects, a company linked to him, won more than 20 contracts.

Malema said nationalisation of mines would happen "not in the distant future".

"Investors, businessmen, government bureaucrats and mining practitioners should begin to adjust to the reality that the democratic state is going to have greater control and ownership of minerals and the actual process of mining in South Africa," he added.

Zuma has stressed that nationalisation is not government policy but said he could not prevent a debate on the issue.

Malema said he had the backing of the labour federation COSATU on nationalisation and would continue talks with the Communist Party. The ANC is in an alliance with COSATU and the communists.

The communists and the youth league have been at odds over Malema's plans for nationalisation that propose the government own at least 60 percent of mines and his calls that senior leaders relinquish membership of different parties within the alliance.

In particular he has called for ANC secretary general Gwede Mantashe to step down because he chairs the communist party. (Reporting by Peroshni Govender; Editing by Matthew Jones)