President Cyril Ramaphosa has stated that the South African government has no plans to alter the current structure of mining royalties.
Speaking during a parliamentary session on Tuesday, Ramaphosa responded to a question on mineral taxation, saying that rather than increasing taxes, the government should focus on adding more value to minerals within the country before they are exported.
The question was raised by the ANC’s chief whip, Mdumiseni Ntuli, who cited a World Bank report suggesting that African nations are capturing only around 40% of the potential revenue from their mineral wealth.
In response, Ramaphosa pointed out that mining companies already contribute significantly to South Africa’s economy, paying around 14% of all corporate tax. He also emphasised their broader economic role.
Ramaphosa highlighted that the recently released draft of the critical minerals research strategy, now open for public consultation, prioritises domestic value addition to mineral resources.
“We already have a broad and diversified taxation system that allows for effective revenue collection across various mining activities,” the president said. “This system varies according to the type of commodity and whether or not any value has been added, such as through processing or refining. It’s a robust and forward-looking approach to mineral taxation.”
