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. ..

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