The South African Mining and Energy Minster has not ruled out the possibility of imposing a windfall tax on mining businesses.

Buyelwa Sonjica has told Mining Journal that proposals for the one-off tax were a "possibility" and "something we are still looking at", but stressed that any decision would only be made after consultation to ensure that "we make everybody comfortable with any step we seek regarding that direction".

The tax had been proposed in the wake of findings from a government-appointed task force conducting research for the impending Mining Royalties Bill.

The team had recommended that mining companies pay extra taxes when prices for metals exceed a pre-determined limit to clamp down on "excess profits".

However, after news of the proposals was first circulated in February, criticism from the mining industry has been vociferous.

Worries over the proposed legislation have been blamed for a fall in the value of the rand and in mining companies' share prices.

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