SA miners to deliver tax windfall after metals rally | Fin24
  • Load Shedding

    Find the latest load shedding schedules for Joburg, Durban, Cape Town, and other cities.

  • Medupi

    How a series of failures and design flaws combined to bring the power plant to its knees.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.


SA miners to deliver tax windfall after metals rally

Aug 02 2019 11:42
Felix Njini

South Africa’s platinum and iron ore producers will generate additional tax revenues for the nation’s cash-strapped government as a rally in metal prices buoys their earnings, according to Morgan Stanley.

Royalty payments are estimated to climb 70% this year for the listed mining companies covered by the bank, while tax payments could increase by as much as 80%, Morgan Stanley analysts including Christopher Nicholson said in a note.

Miners such as Anglo American Platinum and Kumba Iron Ore are reaping windfall profits from higher palladium, rhodium and iron ore prices, while a weaker rand lowers their costs.

“Improved profitability should lead to a materially higher tax and royalty take from South African mines in 2019,” the Morgan Stanley analysts said. “A much needed boost for the South African fiscus.”

The government is under pressure as it seeks to bail out the debt-laden state power utility Eskom. That will probably widen a fiscal shortfall, which is already forecast to be the worst in 10 years.

eskom  |  mining  |  sa economy


Company Snapshot


Struggling power utility Eskom will take centre stage at this year's mini budget

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote