South Africa's platinum group metal miners will not be surprised with any sudden new taxes, a government minister said Monday (February 6th).

"I don't think that surprises are good for an industry like this, and this is likely to be the trend taken by government in introducing change," said national planning minister Trevor Manuel.

Speaking at a mining conference in Cape Town, he did suggest South Africa's mining companies are likely to face changes to existing tax codes.

"If there is to be change, I'm pretty sure that the finance minister and department of mineral resources will take a long-term view and not impose this one fine morning," he added.

Mr Manuel went on to discuss nationalisation and gave further reassurance to miners by saying this is not something the government is keen to press.

A report from the ruling African National Congress party has, according to local reports, rejected nationalisation as too costly and unconstitutional.

Mr Manuel gave further confirmation that this is the line being taken by the government.

"Nationalisation, apart from everything else, will also require significant investment to advance in the industry. The country doesn't have the resources; it clearly is not a smart strategy," Reuters reports him as saying.

The minister went on to say that the Mineral and Petroleum Resources Development Act, which has a royalties component, "can be improved on".

"Whether the levels are correct or not is also open to debate, but the basic elements are there and is sufficient a platform to build on," he said.

G Joel Chury, editor-in-chief at VantageWire.com, notes that these comments from the minister will be welcome by miners looking to expand and invest in South Africa.

Anooraq Resources, for example, announced last week a restructure, recapitalisation and refinancing transaction aimed at increasing platinum group metal (PGM) production at its Bokoni Platinum Mine by an additional 100,000 pgm ounces per annum by 2016.

Sources:

South African Minister Announces No Mining Tax Surprises (06/02/12)

UPDATE 1-S.Africa will not spring new tax on mines-minister (06/02/12)

ANC study ‘advises against’ mine grabs (02/02/12)

ANC Study Rejects Nationalization of South Africa Mines, Business Day Says (02/02/12)

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