South Africa's mining royalty taxes will be adjusted after the country's National Treasury agreed to make changes.

Platinum firm Anglo American were one of the companies to call for changes, claiming that previously proposed measures would deter investment.

Royalty rates will now change to seven per cent of sales from 0.5 per cent after transport costs but the profitability of each firm and what they produce would be taken into account, the Treasury said.

According to reports from Bloomberg, the royalty on refined metals is expected to be between 1.7 and 2.5 per cent.

Meanwhile, unrefined products are expected to be charged rates of 2.2 per cent to 3.3 per cent.

The new formula will see a maximum of five per cent imposed on refined products while seven per cent will be the maximum for unrefined products.

According to the Treasury the Government will "share in both the upside and the downside of the mining industry".

Royalties were originally proposed in 2003 with the Treasury putting forward a plan for an average 2.7 per cent royalty on platinum-group metal sales in December last year.

Source:

South Africa Revises Formulas for Mining Royalty Tax, 13/05/08
http://www.bloomberg.com/apps/news?pid=20601116&sid=aUWJmMOGvQF8&refer=africa