The South African Government is not ready to give the go-ahead to the Royalty Bill that will affect platinum mines.

Energy Minister Buyelwa Sonjica said that her department was yet to speak to the National Treasury and she did not expect the bill to go through in its current form.

The first review of the bill was published in 2003 and it has been released for public comment since 2006 but a third draft, that will govern the way mining firms are taxed on their production, was released for public comment in December.

Industry has been concerned that the royalty taxes will would effect mines when they are already struggling in the wake of a power crisis.

According to Mining Weekly, mining firms believe the Royalty Bill could hit output and make the industry less competitive.

The Chamber of Mines has submitted its views on the bill and believe a system of "double taxation" could arise.

But Ms Sonjica assured the industry that the Government would pay attention to the concerns.

"The reality is that stakeholders are not happy with the provisions of the Bill as it stands and, as Government, we must pay attention to what they have raised with us," she said.

Source:

Govt to take yet another look at Royalty Bill, says Minerals Minister, 28/03/08
http://www.miningweekly.co.za/article.php?a_id=129451

South Africa considers Mining Royalty Tax review, 17/03/08
http://www.platinum.matthey.com/media_room/1205780407.html

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