SOUTH Africa’s mines lobby urged the government to proceed cautiously with its plans to encourage more local processing of ores that may include taxing mineral exports.
Mineral Resources Minister Gwede Mantashe said last week that besides the tax, the government is looking at measures to encourage more so-called local beneficiation including incentives such as finite tax holidays or power tariffs linked to commodity prices in addition to the levy on unprocessed exports.
“The unintended consequences of export restrictions may entail lower mining production” as returns on primary extraction are eroded, Minerals Council South Africa Chief Executive Officer Mzila Mthenjane said. – Bloomberg