The South African government has delayed a decision on royalty taxes for foreign platinum and gold mining companies.

Reports suggest that the delay has been caused by the larger than expected response from the mining industry, which is concerned about the impact of the charges.

Ministers planned to introduce royalties of around three per cent of platinum producers.

Analysts have warned that such a move could threaten future investment in South Africa and drive foreign companies away.

The government is now consulting on the issue and according to Paul de Mare, tax chief of the mining company Anglo American, a decision is not now expected until next year.

"[The treasury] is planning to look at this in the new year, I believe," the Reuters news agency quoted him as saying. "They have had a lot of feedback and need to absorb that."

"They are really pushing it back a bit and looking at next year," Mr de Mare said.