By Jon Herskovitz
JOHANNESBURG (Reuters) - South Africa's ruling ANC on Friday denied a bid by its Youth League leader Julius Malema to have disciplinary charges against him dropped, allowing a hearing to proceed that could derail the career of the populist firebrand.
The hearing is seen as a showdown between President Jacob Zuma and Malema, who has galvanised the support of the country's poor black majority with his calls for a state takeover of mines, white-owned farms and the redistribution of wealth.
"The National Disciplinary Committee dismissed comrade Julius Malema's application to have the charges quashed," the African National Congress said in a statement, adding the hearing will resume on Monday.
Malema, 30, seen as a potential future ANC leader, faces possible suspension from the party. But if he is exonerated, Zuma could be fighting for his political survival.
Zuma faces a major ANC meeting in late 2012 when the party that dominates the country's politics elects its leaders. He will be in a strong position for re-election if Malema is sidelined but could be a lame duck if Malema stays in the ANC and supports Zuma's rivals for the top job.
The ANC began a disciplinary hearing this week on charges Malema for bringing the ANC into disrepute and sowing dissension in its ranks.
The hearing at the ANC's Johannesburg headquarters was marred by riots when Malema supporters threw stones and bottles at police and journalists on Tuesday.
Malema has been sniping at Zuma's leadership in recent months and seemed to have pushed the ANC to take action when his Youth League embarrassed Pretoria by calling for the ouster of the elected government of ally and neighbour Botswana.
If found guilty, in Malema's second disciplinary hearing in just over 12 months, he could be suspended from the party for several years.
Expulsion would silence his calls for nationalisation of the mining sector, to the relief of investors, but would anger his legions of supporters.
Five other Youth League leaders also face the disciplinary committee in the hearings. If all are fund guilty, it would be seen as a purge of Malema's leaders and his influence over the league.
Economists have warned that nationalisation would lead to the country being ostracised in international trade and would bankrupt the state -- it would cost about twice the annual national budget to buy out the mining firms listed on the Johannesburg bourse.
(Editing by Marius Bosch)