WHAT IS THE BASIC STRUCTURE OF THE MINING ROYALTY REGIME IN SOUTH AFRICA?
In South Africa the liability to pay mining royalties arises when mineral resources which have been extracted from within the Republic, are transferred. The `transfer` of the mineral resources is the trigger for the imposition of the royalty. `Transfer` is defined as the disposal of a mineral resource, or the consumption, theft, destruction, or loss of a mineral resource (other than by way of flaring or other liberation into the atmosphere during exploration or production) if that mineral resource has not previously been disposed of, consumed, stolen, destroyed or lost. Because mineral resources are often temporarily exported for refining, the temporary export of mineral resources is not regarded as a transfer.Read further