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| South Africa Rejects Mining Tax |
by Lorys Charalambous, Tax-News.com, Cyprus
Friday, September 03, 2010
South Africa's Minister of Mineral Resources, Susan Shabangu, attending the Paydirt Africa
Downunder Conference in Perth, has said that her country
would not introduce a new mining tax, as is being proposed in Australia.
She confirmed that the South African government has never thought about such
a tax, and pointed to the still-unresolved political and industrial problems
the current mining tax proposal has caused in Australia.
She admitted that South Africa has its own problems in the mining sector,
which came out of new reforms introduced by the Mineral and Petroleum Resources
Development Act (MPRDA) of 2002. The government had noted a growing negative
sentiment regarding South Africa’s mining sector, specifically in relation
to its regulatory framework.
She said that, while the government will take care how it proceeds with further
changes in the mining sector, it is now in the midst of a moratorium
on prospecting licences and the formulation of amendments to the MPRDA. She
confirmed that it is probable that the time taken to approve both prospecting
and mining licences will be halved, as part of those further reforms.
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