LETTER: Two types of royalties
Only levies paid in terms of the Mining Royalty Act are appropriate source for sovereign wealth fund
23 February 2020 - 19:56
It is incorrect to link the mineral royalties paid to the state, which mineral resources & energy minister Gwede Mantashe suggests could be the basis for a sovereign wealth fund, with the royalties paid by mines to certain traditional authorities and the “D Account” of the North West government. (“Mine royalties can kick-start wealth fund”, says Gwede Mantashe, February 19).
Mineral royalties paid in terms of the Mining Royalty Act go to the state — into the National Revenue Fund. Their use is not “ring-fenced” — they contribute to the fiscus. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.