[miningmx.com] — MINISTER of Mineral Resources Susan Shabangu on Thursday gave her strongest indication yet that the regulatory and tax regime for South Africa’s mining industry wouldn’t face the burdensome proposals contained in the ANC’s policy document (Sims).
Briefing the media prior to her Budget Vote in parliament, Shabangu said a draft of amendments to the Mineral and Petroleum Resources Development Act (MPRDA) would be submitted to Cabinet in July “at the latest’.
She said Cabinet could’ve already dealt with the bill if it hadn’t been for some revisions suggested by state law advisors on the constitutionality of some aspects.
Shabangu told Miningmx in November the review of the MPRDA would not be finalised prior to the ANC National Policy Conference in June, as revisions had to be informed by the ruling party’s resolutions on the role of the state in mining.
Asked on Thursday whether this was still the case, Shabangu said although ANC branches were still deliberating about the Sims report proposals, the legislative process on the amendments would carry on regardless.
“We’ll go on to do our work as government,’ she said. “We are confident we won’t see many changes (in lieu of the Sims report).’
Shabangu said in her address to parliament later in the day “the review of the act does not seek to introduce any major policy shifts in respect of exploration and exploitation of South Africa’s mineral resources”.
Asked whether the government was considering the Sims report’s specific proposal on a resource rent tax of 50% on mining super-profits, Shabangu said the government’s view was “to create a dispensation that brings in new players and take the industry forward’.
“We won’t create tax burdens that will make our mining industry uncompetitive,’ she said. “No country is ever happy with its own tax systems, but ours compare well and seem to be competitive.’
Shabangu’s views on the resource rent tax echo those of National Planning Minister Trevor Manuel, delivered at the Invest in Africa Mining Indaba in February.
“I don’t think that surprises are good for an industry like this, and this is likely to be the trend taken by government in introducing change,’ he said at the time.
