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Article: Mining supertax
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The ANC has proposed a change in the Constitution to separate mineral and land rights, and a use-it-or-lose-it rule for licencees "squatting" on mining land.
This emerged in a set of policy papers released by the African National Congress in Johannesburg on Monday.
This emerged in a set of policy papers released by the African National Congress in Johannesburg on Monday.
The_Unbeliever
Honorary Master
Tax this, tax that, and pretty soon you will be killing the goose that lays the golden egg.
agentrfr
Executive Member
The old goose has upt an left for Australia, and the new goose being shipped in only speaks Mandrin.
wrathex
Expert Member
Once again, there seems to be no long term view of the issue. In the end it is going to be a 'We shot ourselves in the foot' situation.
Some of the minerals and precious metals we mine in South Africa are very valuable in industry and some quite rare, we should go slow on allowing these resources to be sold at current prices, we should be stockpiling and selling at a more realistic rate in 20 years.
Mine it now, stockpile it and double the profit in two decades time, but two decades is too long for short term thinkers, we're stuck with a 5 year mentality.
Over confidence about our mineral wealth might also be premature, the world is changing, ice covered lands are becoming available for mining and why should the big industrialists invest in South Africa where crime, vandalism, strikes and government greed are profit sink holes ?
Did you know?
Africa produces more than 60 metal and mineral products and is a major producer of several of the world’s most important minerals and metals including Gold, PGE’s, Diamonds, Uranium, Manganese, Chromium, Nickel, Bauxite and Cobalt. It is interesting to note that Africa's contribution to the world's major metals (copper, lead and zinc) is less than 7%. As a result silver production is low (less than 3% of the world's production) due to the fact that most silver is produced as a by product of lead - zinc and copper mining. Although underexplored, Africa hosts about 30% of the planet's mineral reserves, including 40% of gold, 60% cobalt and 90% of the world's PGM reserves - making it a truly strategic producer of these precious metals.
The increase in exploration and mine development in Africa has been primarily focussed on gold and diamond exploration. Undoubtedly, there is still great scope for these commodities, but riding on the back of improving base metal prices, this sector could see an increase in activities. Mozambique, Nigeria and Madagascar are but a few countries that have tremendous potential for base metal and industrial mineral deposits.
South Africa, Ghana, Zimbabwe, Tanzania, Zambia and the DRC dominate the African Mining industry, whilst countries such as Angola, Sierra Leone, Namibia, Zambia and Botswana rely heavily on the mining industry as a major foreign currency earner. Unfortunately, several African civil wars are funded by (and often caused by) some of these commodities, in particular diamonds.
Major new mines opening in Africa or under development are distributed between South Africa, Namibia, Botswana, Tanzania, and Gabon producing gold, diamonds, niobium products, PGE’s, chrome and base metals. Major discoveries over the last year include the discovery of several potentially diamondiferous kimberlites in Mauritania, and still in the diamond scene, the potential marine deposits in offshore southern Namibia.
Where the ideas come from:
The International Monetary Fund says a country stands more to gain should it choose to explore ways of taxing its mining sector to generate revenues.
Then again: There is lot of profit in mining (once the initial investments are made), and ways should be found to enrich both the workers and the investors and not only the investors. Is a super tax what the people want, or is it increased wages and better benefits ?
Upcoming South African investor/miners will no longer be able to afford buying into the mining economy, while the old mining big boys, have paid off their initial investments and can retire while the profits roll in.
Some of the minerals and precious metals we mine in South Africa are very valuable in industry and some quite rare, we should go slow on allowing these resources to be sold at current prices, we should be stockpiling and selling at a more realistic rate in 20 years.
Mine it now, stockpile it and double the profit in two decades time, but two decades is too long for short term thinkers, we're stuck with a 5 year mentality.
Over confidence about our mineral wealth might also be premature, the world is changing, ice covered lands are becoming available for mining and why should the big industrialists invest in South Africa where crime, vandalism, strikes and government greed are profit sink holes ?
Did you know?
Africa produces more than 60 metal and mineral products and is a major producer of several of the world’s most important minerals and metals including Gold, PGE’s, Diamonds, Uranium, Manganese, Chromium, Nickel, Bauxite and Cobalt. It is interesting to note that Africa's contribution to the world's major metals (copper, lead and zinc) is less than 7%. As a result silver production is low (less than 3% of the world's production) due to the fact that most silver is produced as a by product of lead - zinc and copper mining. Although underexplored, Africa hosts about 30% of the planet's mineral reserves, including 40% of gold, 60% cobalt and 90% of the world's PGM reserves - making it a truly strategic producer of these precious metals.
The increase in exploration and mine development in Africa has been primarily focussed on gold and diamond exploration. Undoubtedly, there is still great scope for these commodities, but riding on the back of improving base metal prices, this sector could see an increase in activities. Mozambique, Nigeria and Madagascar are but a few countries that have tremendous potential for base metal and industrial mineral deposits.
South Africa, Ghana, Zimbabwe, Tanzania, Zambia and the DRC dominate the African Mining industry, whilst countries such as Angola, Sierra Leone, Namibia, Zambia and Botswana rely heavily on the mining industry as a major foreign currency earner. Unfortunately, several African civil wars are funded by (and often caused by) some of these commodities, in particular diamonds.
Major new mines opening in Africa or under development are distributed between South Africa, Namibia, Botswana, Tanzania, and Gabon producing gold, diamonds, niobium products, PGE’s, chrome and base metals. Major discoveries over the last year include the discovery of several potentially diamondiferous kimberlites in Mauritania, and still in the diamond scene, the potential marine deposits in offshore southern Namibia.
Where the ideas come from:
The International Monetary Fund says a country stands more to gain should it choose to explore ways of taxing its mining sector to generate revenues.
Then again: There is lot of profit in mining (once the initial investments are made), and ways should be found to enrich both the workers and the investors and not only the investors. Is a super tax what the people want, or is it increased wages and better benefits ?
Upcoming South African investor/miners will no longer be able to afford buying into the mining economy, while the old mining big boys, have paid off their initial investments and can retire while the profits roll in.