It has been claimed that the new mining royalties draft bill in South Africa will not be as burdensome for miners of platinum and other metals as first feared.

Speaking at a press conference following a cabinet meeting, government chief spokesman Themba Maseko stated that the latest draft bill will include a significant reduction on the rates mining companies will be forced to pay.

It was originally proposed that rates would be as much as four per cent for refined pgms, but this has been reduced to three per cent, while unrefined platinum will face a levy of six per cent under the new plans.

Marginal miners could be in line for a reduction in royalties payments of as much as 75 per cent under the latest draft.

The royalties bill has been a source of tension between mining companies and the South African government since it was first proposed, with miners worried about the impact it will have on their profit margins.


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