South Africas Mining Fiscal Regime: H1 2014

Published: Apr, 2014 | Pages: 19 | Publisher: Timetric
Industry: Mining | Report Format: Electronic (PDF)

Synopsis
Timetric's South African fiscal regime report outlines the governing bodies, laws, licenses, rights and obligations and tax-related information on 10 commodities: coal, iron ore, copper, zinc, gold, silver, nickel, chromium, manganese and platinum group metals.

Summary
South Africa's prolific mineral reserves include precious metals and minerals, energy minerals, non-ferrous metals and minerals, ferrous minerals, and industrial minerals. South Africa has significant mineral resource deposits such as platinum, chromium, coal, iron ore, manganese, nickel, phosphates, tin, diamonds, uranium and platinum. The Department of Mineral Resources is the primary body that formulates and implements mining policy for the exploration, development, utilization, processing and management of mineral resources in the country. The Department of Energy, the National Nuclear Regulator and the Mine Health and Safety Council are other governing bodies involved in the development of the country's mining industry.
Scope
The report outlines South Africa's governing bodies, governing laws, prospecting and mining rights, prospecting and mining obligations, key fiscal terms which includes royalties, depreciation, corporate tax, capital gains tax, dividend tax, real property tax, withholding tax, branch profits tax, loss carry forward, VAT and tax incentives.
Reason To Buy
Gain an overview of South Africa's mining fiscal regime.
Key Highlights
The Department of Mineral Resources (DMR) formulates and implements mining policy, and also advises ministers on these matters. It ensures the exploration, development, utilization, processing and management of mineral resources in the country.
The Council for Geosciences, introduced through the Geoscience Act 1993, No 100 of 1993 is the national agency expertise in providing earth science information, and is responsible for providing services for the proper management of natural resources and the methodical development and maintenance of the country's geoscience knowledge for South Africa's onshore and offshore environments.
The Council for Mineral Technology (Mintek) was established in terms of the Mineral Technology Act (30 of 1989) provides research, development and technology transfers that promote the business development in the mineral and mineral products industries.
The Mining Qualification Authority (MQA) was established as a result of the South African Qualifications Authority (SAQA) Act 1995, No 58 of 1995. It is the education training authority in the mining and minerals sector, accelerating the provision and administration of skills development for the mining and mineral sector. Act (No 97 of 1998).
The South African Diamond and Precious Metals Regulator (SADPMR) regulate the diamond and precious metals and minerals industry, and promote beneficiation in the jewelry industry.

 1 Executive Summary 2
2 South Africa's Governing Bodies 6
2.1 Department of Mineral Resources 6
2.1.1 Council for Geoscience 6
2.1.2 Council for Mineral Technology (Mintek) 6
2.1.3 Mining Qualifications Authority 6
2.1.4 South African Diamond and Precious Metal Regulator 7
2.1.5 State Diamond Trader 7
2.2 Department of Energy 7
2.3 tiol Nuclear Regulator (NNR) 7
2.4 The Mine Health and Safety Council 7
3 South Africa's, Governing Laws 8
3.1 Minerals and Petroleum Resources Development Act 8
3.2 Mineral and Energy Laws Ratiolisation Act, 1994 8
3.3 Precious Metals Act, 2005 8
3.4 Nuclear Energy Act, 1999 (Act No.46 of 1999) 9
3.5 tiol Nuclear Regulator Act, 1999 (Act No. 47 of 1999) (NNR) 9
3.6 Mine Health and Safety Act, 1996 (Act No. 29 of 1996) 9
3.7 Diamond Export Levy (Administration) Act, 2007 9
4 South Africa's, Prospecting and Mining Rights 10
4.1 Application for a Prospecting Right or a Mining Right 10
4.2 Prospecting Rights 10
4.2.1 Conditions 10
4.2.2 Rights 10
4.2.3 Duration 10
4.2.4 Renewal 10
4.3 Mining Right 11
4.3.1 Conditions 11
4.3.2 Rights 11
4.3.3 Duration 11
4.3.4 Renewal 11
5 South Africa's, Prospecting and Mining Obligations 12
5.1 Prospecting Rights Holders 12
5.2 Mining Right Holders 12
5.3 Environmental Protection and Assessment 12
5.4 Issuance of a Closure Certificate 12
5.5 Cancellation and Suspension of Rights 13
6 South Africa's, Key Fiscal Terms 14
6.1 Royalties 14
6.2 Depreciation 14
6.3 Corporate Tax 14
6.4 Capital Gains Tax 15
6.5 Dividend Tax 15
6.6 Real Property Tax 15
6.7 Withholding Tax 15
6.8 Branch Profits Tax 15
6.9 Loss Carry Forward 15
6.10 Value Added Tax (VAT) 15
6.11 Tax Incentives 15
7 Appendix 16
7.1 What is This Report About? 16
7.2 Methodology 16
7.3 Secondary Research 16
7.4 Primary Research 17
7.5 Contact Timetric 17
7.6 About Timetric 17
7.7 Timetric's Services 18
7.8 Disclaimer 19


List of Tables
Table 1: Mining Industry in South Africa, Fiscal Regime Terms and Other Taxes 2
Table 2: Mining Industry in South Africa, Depreciation Rates (%), 2014 14