CAPE TOWN: South African President Jacob Zuma yesterday said mining taxes will be reviewed in a move likely to renew uncertainty in the key sector hit by wildcat strikes and nationalisation threats.
Zuma’s announcement is the first clear indication that royalties were up for review in the mining sector — the bedrock on which Africa’s wealthiest economy was built.
Zuma told the opening of parliament later this year, the minister of finance will be commissioning a study of current tax policies, to make sure that there is an appropriate revenue base to support public spending.
Part of this study will evaluate the current mining royalties regime, with regard to its ability to suitably serve our people, he said.
The Chamber of Mines welcomed the announcement, with CEO Bheki Sibiya saying the chamber hoped to be invited to contribute to the study ‘to ensure that its outcomes are fully informed’.