royalty for gold mining in south africa

IMF Country Report No. 15/244 SOUTH AFRICA

2015-9-8 · South Africa. Returns to mining activities in South Africa appear to have declined. Depletion of known reserves has become severe in long-established sections of the mining industry. Depletion particularly affects the traditional gold mining sector. Coal has become the leading mine product by value with iron ore possibly the most profitable.

Mining industry in South Africa

2021-8-3 · Coal mining in South Africa began around the same time as gold mining and is one of the country''s most valuable commodities, accounting for a quarter of mineral mining …

Gold Price Today South Africa

For South African investors, the prevalence of the mining industry has created an environment in which shareholders benefit from a high US$ gold price and a weak rand. This in turn creates the potential for higher corporate profitability and above-average share price gains over time in the mining industry.

State of Mining in Africa In the spotlight

2021-9-1 · royalty tax table, we inventoried the current rate structures across the selected countries to see whether there is any material movement. Table 1 below displays the mining royalty tax rates over the past six years for our ten sample countries across Africa…


2020-9-23 · of South Africa''s mining royalties system, while investigating how royalties are paid and how they are administered in speciic mining-affected communities. In addition, the report analyses the main legislative and policy frameworks that exist to manage

Mining Royalties

2016-7-10 · 5.1 Correlation between Mineral Royalties and Effective Tax Rates in South Africa 222 5.2 Employee Numbers, Tonnes Milled, and Average Grade Milled in South African Gold Mines 225 Tables 2.1 Unique Attributes of the Mineral Industry and the Tax Policy Response 17 2.2 Taxes Sometimes Levied on the Mining Industry, and Their Basis 32

EM Royalty Bill 2008

2020-10-12 · royalties based on volume, the royalty liability is calculated by multiplying a unit of output (e.g. kg of gold mined) with a set rate per kilogram (e.g. R5.00). In this instance, if a mine extracts one hundred kilograms of gold during a specified period, the royalty liability will be R500 (100 multiplied by R5.00) for that period.

Mining Tax Recommendations

2021-9-22 · The gold mining formula was introduced to encourage gold mining investment and the mining of marginal ores. Despite the fact that the gold mining industry is reaching its sunset years, it remains a major contributor to employment in South Africa.

South Africa "may" delay mining royalties

2009-2-12 · South Africa had been set to impose mining royalties (under the Mineral and Petroleum Resources Royalty Act) in May 2009. Yesterday, following discussions with labour and industry, South African Finance Minister Trevor Manuel (one of the smartest men in financial government anywhere in the world today in IM''s opinion) proposed a delay in implementing the royalty …

Streaming and royalties in mining: Let the music play on

2021-4-29 · Streaming and royalties in mining: Let the music play on. By Guest Contributor. Apr 29, 2021. Renewed growth sentiment among miners'' management teams, combined with the rise of streaming-and-royalty financing over the past …

How a Gold Royalty Works

A gold royalty is a contract that gives the owner (a gold royalty company) the right to a percentage of gold production or revenue in exchange for an upfront payment. Gold royalty companies use these contracts as a way to finance mining companies in need of capital. This alternative form of mine financing is often more attractive than ...

Why gold mining matters

2021-9-24 · Contacts. Why gold mining matters. The gold mining industry has played a significant role in the historical development of South Africa and continues to play an important role today, not only on a macro-economic level but on local and community levels too. This is despite the country''s gold mining production having declined in recent years.

Tax Solutions for Mining

2021-9-25 · The mining industry poses some very specific challenges from a transfer pricing point of view. South African mining groups are often involved at more than one level in the supply chain. For example, the group may both mine and beneficiate the commodity in South Africa.

Mining duties, royalties and taxes in South Africa

2019-7-4 · The Mineral and Petroleum Resources Royalty Act 28 of 2008 (Royalty Act) sets out the revenue-based royalties payable on mineral resources that are extracted within South Africa and ''transferred''.

Cut-off grade determination for the maximum value of a ...

2009-8-26 · the larger mining operations in South Africa. Thus gold production at these mining operations is constrained by the rate of extraction rather than infrastructure capacity. The results for the industry average, small gold mine shown in Table I are applied in Table III by way of an example in which the present value of a mining operation can


2019-12-10 · world''s largest mineral reserves of platinum, gold, diamonds, chromite, manganese, and vanadium. Mining in Africa is an integral and important part of the continent''s economy. Many mining projects suffer extreme risks and difficult decisions and sound mining law is integral for an investment decision. The

Metals streaming-and-royalty financing | McKinsey

2021-4-27 · Benefits for mining companies. Since the inception in the 1980s and early 2000s of the mining royalty and streaming sectors, respectively, these alternative forms of financing have grown steadily from $2.1 billion in 2010 to more than $15 billion in 2019. Indeed, the acceleration over the past half-decade has taken place in an environment in ...

How to Invest in Gold in 2021 | Pan African

2020-2-16 · South Africa was previously the world''s leading producer of gold, mining over 1 000 tons in 1970. Today, South Africa mines just over 120 tons per annum, as the world''s 9th largest producer. South Africa currently has over 80 registered mining projects in various stages of development, and a number of active mining houses, juniors, mid ...

At a glance: mining duties, royalties and taxes in South ...

2021-5-27 · Gold mining companies, however, are taxed in terms of a formula that, by and large, takes into account the profitability of the company and …

Gold Mining in South Africa | An Overview for Gold ...

2019-9-4 · Gold and diamond discoveries played an important part in the growth of the early Republic of South Africa. Historically, the country was the world''s largest gold …

List Of Gold Mines In South Africa

2021-1-12 · List Of Gold Mines In South Africa And Their Names. South Africa is one of the countries making a lot of people via mining. The mining sector keeps contributing greatly to the country''s economy, and it is common knowledge that South Africa is blessed with important minerals and metals like diamonds, coal, coal, platinum, and so on.

Artisanal and Small Scale Mining

2019-6-11 · MINERALS COUNCIL SOUTH AFRICA . ARTISANAL AND SMALL-SCALE MINING. Page 3. 3: INTERNATIONAL CONTEXT. The majority of the global mining workforce is engaged in ASM. A study conducted by the World Gold Council in 2011 estimated that annual ASM gold production was about 13% of total annual production. According to a more recent study (involving

Mining in Africa

2021-4-23 · 1.1 Environmental and Health Issues in Gold Mining Areas 9 1.2 What Is a Mining Community? 12 1.3 How Remote Sensing Informs Agricultural Production 21 3.1 Artisanal and Small-Scale Mining 70 4.1 Small-Scale Mining Poses Challenges for Identifying Impacts of Large-Scale Mines 99 4.2 Effect of a Mine Opening on Access to

DGS Law | Mineral Financing

Representing mining royalty companies on financings involving royalty acquisitions. Representing private equity investors on multiple creative financings for mining companies involving the use of debt, equity, warrants, metal streaming, and royalties. Representing mine operators in royalty financing and gold …

Royalty streaming: a golden funding ...

2019-9-3 · Royalty streaming: a golden funding opportunity for Africa. While gold remains a safe haven share for investors and funding it is also a great hedge …


2021-9-22 · Mining contributed R360.9 billion to South Africa''s gross domestic product (GDP) during 2019, up from R351 billion in 2018. Employment in the gold sector has continued to decline since the 1980s with around 95,130 workers currently employed.

South Africa: Billions in Mining Royalties Intended for ...

2019-7-1 · South Africa: Billions in Mining Royalties Intended for the Poor Squandered, Stolen or Diverted. 1 July 2019. GroundUp (Cape Town) By Ciaran Ryan.


2016-9-21 · (the "Royalty Act") regulates the imposition and calculation of mining royalties. Mining royalties are deductible for income tax purposes. Basic Structure of Royalty Regime In South Africa the liability to pay mining royalties arises when mineral resources which have been extracted from within the Republic, are transferred.

Platinum and Gold Mining in South Africa: The Context of ...

Mining is a source of extraordinary wealth, but its benefits often do not accrue to the workers and communities most involved. This paper presents two case studies of mining in South Africa to reflect on the history and legacy of mining both through observation and through the voices of affected communities.