Fin24

Jobs bloodbath if mining tax proceeds

2012-12-14 07:47

Johannesburg - The Chamber of Mines says the mining sector will shed tens of thousands of jobs if ANC delegates decide to impose higher taxes on it, according to a report on Friday. 

"It will mean a lot of marginal mines will need to be mothballed and, in terms of job losses, the probability is that it would run into the tens of thounsands," Chamber of Mines CEO Bheki Sibiya told the Business Day. 

"Our engagement with the ANC will probably be more intense after Mangaung." 

The ANC elective conference in Mangaung, which starts on Sunday, will finalise decisions on policies that the government will then take on board. 

The newspaper reported that the party would probably adopt a proposed mineral resource rent tax of 50% on profits above 15% of normal returns. 

This year, the mining sector lost 15 000 jobs in the third quarter after months of wildcat strikes across mines.

 

Comments
  • zapadela.tistarocha - 2012-12-14 08:08

    And the Elite spew their tainted spume regarding a depressive future. Just stop lying, Stop living like Elistist , Start progressing this country Instead of trying a manipulate a status quo that only enriches the Elite

      Lucky - 2012-12-14 08:40

      at least this elite work for their gains. the anc elite feed off their taxes without lifting a finger or investing a red cent! go figure?! no future if they decide to disinvest but we would see the "other elite" scurrying to get their hands on the dirt until the spade was back in fashion!!

      patrick.buckley.712 - 2012-12-14 08:47

      Remember the old sond: "slow boat to China"? Well we are on a very fast liner heading very quickly in that direction. This government is on a path of total destruction.........

      gestoffle.vaneerdenvark - 2012-12-14 09:24

      @zapadela.tistarocha/bluzulu/coconut/ This is the ANC government YOU voted for, having regrets now?

      elewies - 2012-12-14 09:36

      I would respect a call from the ANC to increase the wages of miners, not to tax mines in order supplement their corrupt tendencies. The poor will never ever ever see a cent of that money if the corrupt government get their greedy claws on it.

      frank.vankaapstad - 2012-12-14 10:05

      Instead of doing what they promised to do (educating the nation, uplifting the poor, giving everyone equal opportunity) this ANC Government is wasting money on private jets and expensive hotels and stealing as much money as possible. South Africa could have the potential to be the leading service based economy in Africa but that requires education and the right policies. But due to the ANC's complete and utter FAILURE during the past 18 years they now have to plunder the most primitive form economic activity to try and generate money. In doing so they will invariably create even more problems and the downward spiral continues.

      jesibelle.krueger - 2012-12-14 10:11

      The corrupt parasitic goons that govern SA cannot fathom that 'profits' serve as returns on investment and as an investment 'magnet'. The ANC government does not have money to invest in the mines - notably as 88% of the country's national budget goes to salaries - iow the ANC's "JOBS FOR VOTES" program (in itself an overtly corrupt action). The e-toll-revolt is a de facto TAX-REVOLT. South Africa's bona fide tax payers need to keep the momentum and proceed with a TOTAL TAX REVOLT and starve the ANC out of existence.

      zapadela.tistarocha - 2012-12-14 21:11

      I prefer keeping items simple hence a simple example. A Dairy/corner-shop owner sells his goods to progress him/herself and his/her Family. The Minerals of RSA belong to it's citizens therefore the greatest portion of funds raised from these sales must accelerate transformation in all facets from Education to Free Medical aid. Seems different rules on this Planet. In July of this year , Australia introduced a 40% Governmental tax and the world never made comment however once RSA starts talking about gaining more funds from Mineral resources, ...........Investors get anxious....................WHY ???

  • gary.desousa.5 - 2012-12-14 08:08

    As long as we are run by socialists/commies taxes will be the way to fund the socialist and benefactor state,dispensing money as it sees fit to reward. There is no need to nationalize anything, let private sector do the work and then just tax them. This will continue till somebody in the private sector says stop.

  • Mike - 2012-12-14 08:12

    Mechanise, mechanise, mechanise..............

  • nicholas.graan - 2012-12-14 08:13

    Will they ever learn??

  • amanda.victor.92 - 2012-12-14 08:14

    Steal, steal and steal some more. Not content with stealing from tax payers they now move onto to job creating industries for more to steal. How about just cutting out corruption ANC? You'd have billions more in your coffers!

      gestoffle.vaneerdenvark - 2012-12-14 09:27

      @zapadela.tistarocha/amanda victor - devil has two faces........

  • glen.e.huysamer - 2012-12-14 08:24

    Yep,.... the same old same old mining propaganda over and over when ever there is talk of changing the status quo.... Right now, the way things are going in this country closing any mines or all the mines will make very little difference to South Africa's 'Joe Public' South African mineral recourses are being sold at almost half of it's value to multi-nationals who own the ANC/Casatu/Alliance ruling party.... we have no government....... the ANC is owned lock, stock and barrel.....and are controlled and run by a few thugs within the top structures,...while all the minos hop and dance to the elitist tunes in the hope that they get 'made-up' and included within the circle of self serving servants of evil. Instead of been South Africa's greatest asset and blessing, our mineral resources have become our greatest curse......

      malcolm.james.macleod - 2012-12-14 09:03

      If you think that losing one million jobs, R407-billion in annual local spending and 18% of our GDP will make "very little difference to Joe Public" I am afraid you are sorely mistaken and have not thought things through. Could we benefit more from mining? Sure. Should things change? Probably. However these facts don't justify spreading lies, we would be much much worse off right now if we had no mines.

      heibrin.venter - 2012-12-14 09:43

      @Kagiso: Sorry to burst your bubble, but you didn't include all the projects canned because they were no longer viable, the fact that mining companies can claim back their capital investment before they start paying taxes etc etc. The MAIN difference between SA and Oz will however come at the bit where you start listing everything that *supposedly* will be cheaper in Oz: in SA the tax will simply end up in the corrupt hands of the few elites, not in the hands of the public, unlike Oz. And trust me, no-one in Oz (Western Australia & Queensland at least, since they are the biggest mining states) have ANY compassion for this tax. Why? Too many people have lost their jobs.

      heibrin.venter - 2012-12-14 11:14

      Kagiso: I'm not saying there shouldn't be a tax, just that your assesment is wrong. I currently work in Perth, and can tell you from personal experience that a lot of mining (and more importantly, mining related industries) have had projects cancelled because of the tough economic climate worldwide. As such slapping a 50% tax on the mines (and 50% is the highest by far of ALL the countries where this is done (Oz is 30%, Ghana is currently 25%), will simply kill the minig industry in SA, considdering the steep rise in labour costs, lost production to labour unrest etc. A lot of people have lost their jobs, and not just unskilled labour, we're talking engineers and project managers here. Directly due to the tax? Hard to prove. Was the tax a contributing factor? Definately. Especially for smaller miners, where cash flow is tight. Please remember that mines work on a 15-20 year life-cycle, and viability assesments is done accordingly. It's pretty easy to then see that a mine that would have been profitable over say 15 years now suddenly becomes much less so, because they'll have to pay this tax for 10 of those 15 years, assuming that the first 5 years they'll be able to write off the tax against capital investment. now suddenly a reasonably profitable project just becomes much less so, and results in the mine not being opened / mothballed.

      glen.e.huysamer - 2012-12-14 13:21

      Clinton you actually portray the minority brainwashed illusion that what the mines give back to South African society is all that it should be giving. While you try and concentrate on what I just said, I will say it this way,......following on what you believe you just wrote..... that the mining business, serves itself first.....and what you and I and any other person gets out of it in South Africa is controlled to the Marikana Massacre extent..... and if you belief it provides 10jobs, ........ I would say it should be providing ten times more than that......and I would not phrase it as jobs..... we need livelihoods...... not freaking jobs....

      glen.e.huysamer - 2012-12-14 13:37

      And really I am not talking about jobs it is about governance not ruling party thug strategy it is about getting the business right, especially around our natural resources which belong to the citizens of this country and not some fat cat son of a connected politician or the chamber of mines or some jet owning mogul sitting abroad... Selling our iron ore to Mittel for 40% less than world market value.....(just a small example) is freaking ludicrous business practices, which is actually legal theft, a fleecing of South Africa national assets.... which in time to come will leave 'Joe-Public' penniless .........ohhhhh wait......this is already happening... R15.00 a loaf of bread, R12.00 for milk, R30 for taxi to work and back..... broke by the first week of the month, with over 350 000 children having to eat at school feeding programs in the Western Cape alone.... this is where we are and it is getting worse.... And no matter what anybody says about the riches the mines offer us, ....with business as usual, here we are, here we are going down freaking poverty lane.... in order to keep the few connected elitist scum driving around in Ferrari's into which most can't even fit into they are so overfed. Bring on Nationalization I say, because the present system does not cut it either.

  • David Steyn - 2012-12-14 08:25

    @zapadela you obviously suffer from an inferiority complex, shame man. Go ahead and be part of the killing (and eating) of the goose that lays the golden eggs.

      honey.deelishus - 2012-12-14 08:49

      You obviously didn't read Zapadela's comment very well!

      gestoffle.vaneerdenvark - 2012-12-14 09:30

      @Honey - You dont understand "honey", this Zapadela is an indian chap who works for portnet in richards bay, who goes under various alias' and who tries to wind up white people all day long, he also VOTED anc..........

  • Eterni80 - 2012-12-14 08:26

    nkandla has to be paid for somehow..

  • wayne.lawson.351 - 2012-12-14 08:28

    The problem with taxing the mines is that the money will go into the states coffers which will then be pilfered by the politicians. The miners will not see any of this monery.

  • surfing.sam.9 - 2012-12-14 08:32

    anc does not worry about the people and their jobs, they want taxes to loot.

  • maureen.churchill.9 - 2012-12-14 08:37

    And the mines fight back. The government can't have it all their own way. The mines have learnt at last!!!!

  • altusvanzyl - 2012-12-14 08:40

    Awesome! Great news, thank you ANC now we can get rid of all the workers. Viva machines!!

  • steve.ritchie.739 - 2012-12-14 08:52

    The cANCer are a bunch of visionless, leaderless thieves. They care squat for the people they are supposed to serve, power-crazy and obsessed with self-enrichment. Take good note cANCer fools, the warnings are there.

      Heini McCarthy - 2012-12-14 10:49

      These muppets dont understand that, YOU CANT KEEP MILKING THE SAME COW!! Good God! how many more taxes do we have to pay!

  • marcdefl - 2012-12-14 08:52

    The stupidity of some of these comment amaze me. Follow global practice on tax and tax the super profits mines make. It is fair that all South Africans benefit form the resources of the country and the most effective way is to tax effiecent private sector.

      kyle.chetty3 - 2012-12-14 09:08

      Taxes that go to corrupt officials, you have a narrow mind set

      Duncan Colter - 2012-12-14 09:08

      The problem with tax is that the people don't benefit from it. Nkandla has shown us that the top brass take the money for themselves. Openly.

      JamesMWood - 2012-12-14 09:13

      Name for me just one policy or program taken from a foreign country that has been effective in this country!

      SarelJBotha - 2012-12-14 13:22

      Perhaps but not in countries with corrupt governments and yes this includes RSA.

      mbuso.siera - 2012-12-14 20:25

      The public will benefit in improved health system,proper housing development,increase in basic service delivery,an improve education sytem. if this mining tax proceeds......its a good aproach for all South Africans to benefit from their natural resources.....individuals have benefited nd its enough....

  • rai.verran - 2012-12-14 10:34

    Only if taxes are used wisely - but they are not.Then to balance the equation when mining maks losses - then what?Does the tax payer bail them out - what about AURORA MINE?.No one can win .Down we go another step.

  • horst.muller.7330 - 2012-12-14 10:36

    Don't overlook the fundamental truth: "Subsidise it and you get more of it, Tax it and you get less of it." That would mean less mining, lower income, lower employment

      zapadela.tistarocha - 2012-12-14 21:16

      Why less Mining ?? Our partners in BRICS are more than happy to help us mine and buy practically all our production however we don't need help. We have the expertise right here.

  • jason.marshall.1804 - 2012-12-14 11:53

    Zimbabwe here we come! Zuma, build a palace while you at it.

  • SarelJBotha - 2012-12-14 13:17

    Perhaps this will be a good thing. Some people only learn from feeling pain.

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