South Africa’s Mining Fiscal Regime: H2 2014

GlobalData's fiscal regime report covers South Africa which is well known for its abundance of mineral resources, holding prolific mineral reserves of gold, platinum group metals, chrome and manganese ore, zirconium, vanadium and titanium.

Scope

The report outlines South Africa’s governing bodies, laws, mining licenses, mining rights and obligations and key fiscal terms which includes royalties, depreciation, corporate tax, capital gain tax, dividend tax, real property tax, withholding tax, branch profit tax, loss carry forward and value added tax (VAT)

Key Highlights

• The Department of Mineral Resources (DMR) formulates and implements mining policy, and ensures the exploration, development, utilization, processing and management of the country’s mineral resources.

• The Council for Geo-sciences is the national agency for expertise in providing earth science information, and is responsible for providing services for the proper management of natural resources, as well as the methodical development and maintenance of the country’s geo-science knowledge for South Africa’s onshore and offshore environments.

• The Department of Energy is responsible for overseeing the exploration, development, utilization, processing and management of South Africa’s energy resources.

• The Minerals and Petroleum Resources Development Act (MPRD Act No. 28 of 2002) which came into operation on May 1, 2004 is the current governing law, having replaced the Minerals Act, 1991 (Act No. 50 of 1991).

Reasons to buy

Gain an overview of South Africa's mining fiscal regime.

Companies mentioned

Table of Contents

1 Executive Summary

2 The South African Mining Industry – Governing Bodies

2.1 Department of Mineral Resources (DMR)

2.1.1 Council for Geo-science

2.1.2 Council for Mineral Technology (Mintek)

2.1.3 Mining Qualifications Authority

2.1.4 South African Diamond and Precious Metals Regulator

2.1.5 State Diamond Trader

2.2 Department of Energy

2.3 National Nuclear Regulator (NNR)

2.4 The Mine Health and Safety Council

3 The South African Mining Industry – Governing Laws

3.1 Minerals and Petroleum Resources Development Act

3.2 Mineral and Energy Laws Rationalisation Act, 1994

3.3 Precious Metals Act, 2005

3.4 Nuclear Energy Act, 1999 (Act No.46 of 1999)

3.5 National Nuclear Regulator Act, 1999 (Act No. 47 of 1999) (NNR)

3.6 Mine Health and Safety Act, 1996 (Act No. 29 of 1996)

3.7 Diamond Export Levy (Administration) Act, 2007

3.8 Broad-Based Black Economic Empowerment Amendment Act, 2013

4 The South African Mining Industry – Prospecting and Mining Rights

4.1 Application for a Prospecting Right or a Mining Right

4.2 Prospecting Rights

4.2.1 Conditions

4.2.2 Rights

4.2.3 Duration

4.2.4 Renewal

4.3 Mining Right

4.3.1 Conditions

4.3.2 Rights

4.3.3 Duration

4.3.4 Renewal

5 The South African Mining Industry – Prospecting and Mining Obligations

5.1 Prospecting Rights Holders

5.2 Mining Right Holders

5.3 Retention Right Holders

5.4 Environmental Protection and Assessment

5.5 Issuance of a Closure Certificate

5.6 Cancellation and Suspension of Rights

6 The South African Mining Industry – Key Fiscal Terms

6.1 Royalties

6.2 Depreciation

6.3 Corporate Tax

6.4 Capital Gains Tax

6.5 Dividend Tax

6.6 Real Property Tax

6.7 Withholding Tax

6.8 Branch Profits Tax

6.9 Loss Carry Forward

6.10 Value Added Tax (VAT)

7 Future Development

7.1 Amendments to the Broad-Based Black Economic Empowerment Act

8 Appendix

8.1 Abbreviations

8.2 Methodology

8.3 Secondary Research

8.4 Primary Research

8.5 Contact GlobalData

8.6 About GlobalData

8.7 GlobalData’s Services

8.8 Disclaimer

List of Tables

Table 1: The Mining Industry in South Africa – Fiscal Regime Terms and Other Taxes, 2014

Table 2: The Mining Industry in South Africa – Depreciation Years, 2014

List of Figures

Figure 1: The Mining Industry in South Africa – Commodity Mines at Different Stages (Number of Mines), 2014

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