The impact of the Minerals and Petroleum Resources Royalty Act on the South African mining industry : a critical analysis

摘要

The Minerals and Petroleum Resources Royalty Act (MPRRA) became effective on1 March 2010. This legislation may have a significant impact on employment, foreigninvestment and future exploration in the South African mining industry. This articlereports on a critical analysis of the MPRRA prior to its implementation in order toidentify aspects that may impact adversely on the South African mining industry andwould require further research after the implementation of the MPRRA. Based on thefindings, the authors recommend that the impact of the level of royalties levied as well asthe mechanism to promote downstream beneficiation be researched to establish whetherthe legislators ought to reconsider these provisions in the light of their impact on themining industry.