South Africa considers mining regulations 20th April 2004

South Africa is seeking to encourage mining firms to work with partners in a bid to ensure some of their output is processed within the country.

The move would add to existing rules governing the development of black ownership of companies and the associated tax requirements.

South Africa is seeking to reduce the emphasis on commodity exports, thereby bringing down its high unemployment rate.

Today saw the draft amendments of the precious metal and diamond laws published, as the government seeks to facilitate jewellery production in South Africa itself.

Sandile Nogxina, director general of South Africa's mines ministry, told Bloomberg the government won't make miners process their own output.

Con Fauconnier, president of the Chamber of Mines, which represents most mining companies operating in South Africa, and chief executive of Kumba Resources, said he supported the idea.

"Let it be a bill that is encouraging the industry to go down that route rather than forcing it to," he explained.

The Black Economic Empowerment laws - requiring miners to sell 26 per cent of their assets to blacks by 2014 - come into force in May.

At present the rules propose charging platinum miners four per cent of their sales in royalties, which has angered some mining outfits.


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