[miningmx.com] — THE ANC discussion document on the state’s
involvement in mining has slated National Treasury’s carbon tax proposals, saying such
measures could be “extremely damaging’ to South Africa’s economy.
“A carbon tax as currently configured would add to costs, increase the cut-off gade
and consequently sterilise mineral resources,’ read the document. “It could also
potentially render many energy-intensive beneficiation operations unviable.’
In an initial draft released in 2010, Treasury suggested taxes ranging from R75/tonne of
carbon dioxite emitted to R200/tonne, depending on the severity.
“The carbon tax should be reconfigured, possibly by having a higher resource rent tax
[above 50%] linked to carbon emissions, and should also include a realistic basket of
supply-and-demand side measures to reduce national carbon emissions.’
