S. African Mine Royalties to Be Made Public Tomorrow (Update2)
By Mike Cohen
Mining News
Thu, 20 Mar 2003, 4:15am EST
Cape Town, South Africa, March 19 (Bloomberg) -- South Africa's cabinet has discussed proposals to charge miners royalties and will make them public tomorrow in a move that will trim the profits of the world's biggest precious-metals miners.
The details of the proposals were not given at a briefing after the cabinet meeting.
``Four weeks will be allowed for comments from stakeholders before the bill is finalized by cabinet for submission to parliament,'' said Joel Netshitenzhe, the South African Government's chief spokesman. ``The precise royalty rates'' will be announced tomorrow.
The royalties will cut earnings at the world's leading platinum, gold, coal and chrome miners, such as Anglo American Plc and BHP Billiton Group. President Thabo Mbeki's government says it plans to spend the money on developing communities close to mines.
The royalties would also affect companies including Xstrata Plc, Anglo American Platinum Corp, Impala Platinum Holdings Ltd., Lonmin Plc, AngloGold Ltd., Gold Fields Ltd., and Harmony Gold Mining Co.
South Africa's mines minister, Phumzile Mlambo-Ngcuka, plans a press conference to make an unspecified announcement about the mining industry at 1 p.m. local time tomorrow.
Bernard Swanepoel, chief executive of Harmony Gold Mining Co. said that the royalty would levied on company revenue. Sawnepoel was speaking on Classic FM, a private South African radio station.
quote.bloomberg.com.
Fred |
