Support for the controversial Royalty Bill is growing, according to the Johannesburg Mineweb, with two foreign mining leaders expressing support for the way the legislation is being processed.

Lonmin's chief executive Edward Haslam and Nkwe Platinum's managing director Craig Oliver believe that the South African government is committed to ensuring that the levy will not have a debilitating effect on mining interests.

Mr Haslam told Mineweb that, having spent time with Treasury official Martin Grote, he was confident that the Treasury had a realistic appreciation of companies' ability to pay.

Finance minister Trevor Manuel's recent announcement to the effect that the bill was unlikely to be presented until February has been taken as an indication that proper consultation will be undergone before a final draft of the legislation is prepared.

Although Mr Haslam was unsure about the necessity of a separate tax, and questioning of the government's view that some miners have under-reported their profits, he was confident that worthwhile dialogue has taken place:

'I think there was a lot of fundamental mistrust between the Treasury and the mining industry, but I think that has been overcome and the relationship has improved', he said.

Mr Oliver concurred, commenting that the bill would lessen political risks by integrating the government's interests with those of the industry, and ensuring that the empowerment process was a transparent one.

'Your hear so much negative new about South Africa', he said, 'but the truth is it is open for business.'