The South African government is considering introducing a mining investment incentive scheme in an effort to bring more investment into the country's mines.

Mining precious metals, including platinum and platinum group metals (pgms), is one of the largest sectors in South Africa and the country is keen to see greater investment in exploration to maintain the industry's expansion.

Chamber of Mines Chief Economist, Roger Baxter, has told the South African parliament that the treasury is looking at the introduction of a new incentive that would give investors in exploration companies a tax deduction before they begin generating income.

Such a move could see significant investment in platinum mining in the country and Mr Baxter cited examples in Canada, where he said the initiative had had significant success.

Mr Baxter warned that, unless South Africa took measures to attract further investment, it would begin to lag behind other countries in terms of the investment in its mining industry, potentially threatening the future of the sector in the country.

However, Business Day reports that he concluded: "Progress is being made. We are back on track."

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