South African Finance Minister Trevor Manuel on Wednesday was mum on the topic of the new mining royalties to be introduced by the government this year.
The mining industry had been looking for an indication of royalty levels from Manuel during his presentation of the 2003-04 budget after Mineral and Energy Affairs Minister Phumzile Mlambo-Ngcuka indicated last week that news would be forthcoming in the new government budget.
The National Treasury is currently working a money bill containing provisions for the new royalty structure, which is set to be introduced to Parliament sometime this year.
Manuel said in a media briefing earlier on Wednesday that he had “nothing to say” on the topic, and no mention was made of the royalties in budget documentation.
Speaking at the eight annual International Mining Indaba in Cape Town on February 18, Mlambo-Ngcuka said that the government’s new mining royalty system, as outlined in the Money Bill being developed by the Treasury, would be detailed by Manuel in his Budget Speech on February 26.
The Minister told the 1 600 conference delegates, representing some of the largest mining companies in the world, that the new royalties system to be introduced would be competitive with any other in the world, comparing favourably with those in Russia, Botswana, Chile, Canada, and any other country with a mining industry.
The royalty system will not give any additional burden to mining companies, she reassured the top executives of local mining companies. – I-Net Bridge