SOUTH Africa’s biggest mining companies are opposed to a government proposal that 1% of their annual revenue be spent on developing communities associated with their operations and have countered with suggestions that they instead pay out a share of profit.The Chamber of Mines, which represents companies including Glencore, Anglo American and AngloGold Ashanti, is in discussions with the Department of Mineral Resources and labour unions over a review of the so-called mining charter."This is a regressive imposition, particularly on marginal mines," the chamber’s CEO Roger Baxter said last week. "Our preference is that the commitment should be as a percentage of net profit as it is based on the affordability of the companies."Profit definitionCompanies already pay royalties to government that differ by commodity. Gold producers pay about 3% of revenue. Sibanye Gold, which is the biggest producer of gold mined in the country, earned net income of $56.2m in 2015 from revenue of $1.78bn,...
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