Mines seek a stable royalty regime.

(From Business Day (South Africa))

Byline: Greg Gordon

Mines seek a stable royalty regime Draft reports on new bill fail to meet crucial requirements for industry, reports ROYALTY and taxation systems are a crucial component of the array of factors that are taken into account when considering investment in a country. Given the high-risk nature of exploration and mining, volatile exchange rates and commodity cycles, the long lead times to mine development and the long average life of mines, the need for a stable, predictable and competitive royalty and taxation regime is essential, says Mzolisi Diliza, Chamber of Mines CE.

This month he submitted the chamber's input on the second draft of the Minerals and Petroleum Resources Royalty Bill.

The chamber welcomes the reduction in most royalty rates and the introduction of a fiscal stability clause that locks in a royalty rate for the duration of a mining right. Diliza says the chamber believes that the second draft of the bill represents a significant step …