SciELO - Scientific Electronic Library Online

 
vol.108 issue7Comparative study of the influence of minerals in gas sorption isotherms of three coals of similar rankA new model for mining method selection of mineral deposit based on fuzzy decision making author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Journal of the Southern African Institute of Mining and Metallurgy

On-line version ISSN 2411-9717
Print version ISSN 0038-223X

Abstract

CAWOOD, F.T.. The 2007 South African Mineral and Petroleum Resources Draft Royalty Bill: An independent analysis. J. S. Afr. Inst. Min. Metall. [online]. 2008, vol.108, n.7, pp.377-384. ISSN 2411-9717.

This paper reviews the third Draft Mineral and Petroleum Resources Royalty Bill of 2007, and this analysis identifies potential areas for further consideration by the National Treasury before the new regime becomes official. At its basic level, a royalty regime consists of two elements: the base and the rate that must be applied to the base. Deciding on an acceptable royalty rate is complex and can be done only after understanding the base and after an extensive analysis of all variables affecting the competitiveness of the regime. The proposed royalty rate of the third Draft is calculated by means of a formula that provides for a sliding rate depending on the profitability of the mine. The base is a sales revenue definition that approximates net smelter return. The regime proposed in the third Draft Bill is a significant improvement on previous drafts and, with minor refinements, should stand the test of time.

        · text in English     · English ( pdf )

 

Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License