ANC minimises impact of mining report

A highly-anticipated report on possible reform in the mining sector is merely a discussion document and not cause for concern, the ANC said on Wednesday.

“This is just a report that will be processed,” ANC spokesperson Keith Khoza said.

“It will be taken to ANC branches and structures for discussion so that they can give their own input in terms of the content. The report carries no weight that may cause concern.”

Khoza said any recommendations by party members would be taken to the national policy conference set for June 26 to 29 at Gallagher Estate in Midrand.

The policy conference was part of preparations for the ANC’s national elective conference to be held in Bloemfontein in December.

Khoza refused to be drawn into what the report proposed, saying it would be released on Friday.

Mineral Resources Minister Susan Shabangu on Tuesday said the report reinforced the ANC’s earlier decision that nationalisation was not a viable policy for South Africa.

‘Super profits’
On Sunday, the City Press newspaper published details of the report after claiming to have seen it. It said there were two proposals for new mining taxes.

One was a 50% tax on the sale of mining rights to prevent speculation and the other was a tax of up to 50% on so-called “super profits”, defined as anything more than a 22% return on investment.

The report proposes a reduction in the royalty tax from 4% to 1%.

Mineral governance could be overseen by a new “super ministry”, namely the combined departments of trade and industry, public enterprises, mineral resources, and science and technology.

According to the newspaper, the task team recommended that the ANC investigate state control of mines “in terms of rent share, growth and development, and make targeted interventions to achieve such outcomes”.

The team visited 13 countries to investigate mining models and best practices that would be viable for South Africa. — Sapa

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