South African mining companies face controversial "royalties tax".

(From Agence France Presse)

South African mining companies are bracing themselves for a controversial new tax on their sales, seen by analysts and investors as the second wave of damaging government regulation to hit the sector in less than a year.

Although the draft Mining Royalties Bill is still open for consultation, it is already being blamed for a near-10 percent decline in the Johannesburg stock exchange's main gold and platinum share indices since its publication in March.

"The damage to investor confidence has been swift and severe," said Patrick Evans, president of middle-ranking Canadian mining company Southern Era, in comments quoted by …