anc - mining tax, page-5

Thanks for the heads up guys.

Good link below from Bloomberg which provides a little more detail.

http://www.bloomberg.com/news/2012-02-02/anc-study-said-to-propose-south-african-mining-resource-rent-tax.html

At first i thought this would be negative for PLA, however if the tax is anything like the MMRT in Australia, companies with profits below 75 Million won't be effected. I'm quite certain the DMR will request this clause as it'll help the up and coming local SA miners get off the ground.

IMHO nationalizing the mines was ever an option, they've probably just mentioned it as a negioating tool & to satisfy the extremists that the option was considered.

The big miners in SA will get hit with this massive tax, however i think it'll be watered down to 30-40%. Maybe they want 40%, so they started high at 50%??

Would like to hear from other people better informed about how the tax will effect PLA and it's operations?


Maxy