anc - mining tax

The following was reported in today's Weekend Business in the Sydney Morning Herald:-

"The ruling African National Congress party is reported to be about to release a long awaited study on how best to claim a bigger slice of mining wealth for the South African public. Reports suggest the ANC prefers a method that would impose a 50 per cent resources rent tax rather than taking control of mining operations."

This sounds a lot better than the previously mooted nationalisation of mines, however a lot depends on what the 50 per cent applies to. I would expect that PLA will be making good money before the tax is finalised but in the meantime the uncertainty about the tax will be yet another problem to be overcome.