The South African government is set to revise its mining taxation and mining royalties policies next year.

The SA National Treasury has stated that it is looking at charging royalties on one to eight per cent of mineral sales from 2009, including on platinum. Concerns have been raised that the move could cause problems for investment within the industry.

"Government is keenly aware that the release of the revised Mineral and Petroleum Royalty Bill is important for purposes of investor certainty," the treasury said in a statement to the South African parliament.

"However, some complex issues with regard to existing mineral rights holders and a possible review of certain income tax issues related to the mining sector require attention. It is envisaged this revised draft bill will be released for comment during 2006," it added.

South Africa's long-awaited precious metals law also remains on the cards, despite widespread opposition from miners, and the implementation of new regulations together with changes to the royalties rules could act as a double-whammy for mining firms over the coming years.


Ÿ Adfero Ltd