[miningmx.com] – PLANS to install a resource rent tax on mining
operations in South Africa was now being considered by the ANC following its
publication of eight draft policy documents that will be discussed at ANC conferences
in June and December, Bloomberg News reported.
The draft documents are aimed at tackling unemployment, running at a rate of 24%,
and high levels of social inequality in the country, Bloomberg News said.
“Having concluded our first transition with its focus in the main on political
democratization, we need a vision that must focus on the social and economic
transformation of South Africa over the next 30 to 50 years,’ Jeff Radebe, the ANC’s
policy head, told Bloomberg News.
The 50% resource rent tax would only be triggered when a company achieved a
predetermined return on investment.
The collection would be put into a sovereign wealth fund to pay for development of
mining and infrastructure as well as ease the strengthening of the rand during
commodity booms, Bloomberg News said.
It was hoped some R40bn ($5.3bn) in annual state revenue at current prices would be
generated, Bloomberg News said.
