Cape Town - The cabinet has endorsed a report recommending
the introduction of export taxes on iron ore and steel, where appropriate, to
push producers to sell more of their products domestically.
The government has been looking to protect local manufacturers
who have been struggling to pay export-level prices.
"The manufacturing industry has been seriously impacted
by the price increases that happened globally in iron ore, which means iron ore
producers have been biased towards exports, disadvantaging the local
market," Phumla Williams, a cabinet spokesperson, told reporters on
The recommendations, scheduled for "urgent
implementation", also seek to boost the domestic use of steel, especially
as South Africa embarks on a massive infrastructure investment programme that
includes new railway lines and ports.
Williams could not provide details on the potential tax but
said the relevant ministries, which include the departments of minerals, trade
and finance, would look into its implementation.
The market is currently dominated by iron ore producer Kumba
Iron Ore [JSE:KIO], a unit of Anglo American [JSE:AGL] and the continent's
biggest steel maker ArcelorMittal South Africa [JSE:ACL].
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