The South African government is likely to miss the deadline of August 1 for the publication of the second draft of the Royalty Bill, which deals with mining royalties, said Webber Wentzel Bowens lawyer Peter Leon on Wednesday.
At this stage all indications are that the second draft of the Bill may only be ready by October.
“As a result of the delay in completing the Royalty Bill the Minerals and Petroleum Development Act may only be promulgated in 2004. This delay is not good for the mining sector, which needs certainty,” Leon said.
A key question surrounding the Royalty Bill remains where the money raised from royalties will go.
“The money could go to the National Revenue Fund or the revenue could be ring-fenced for expenditure in the mining industry and surrounding communities,” Leon said.
“I expect that a fair bit of the draft Bill will be revamped. As its stands the Royalty Bill is likely to impede growth in the South African mining sector. The South African Treasury has a major responsibility to ensure the implementation of the Bill results in the legislation achieving its objectives,” he added. – I-Net Bridge