Information as an alternative to mineral rights taxation

A new system for granting access to mineral rights is proposed in the recen tly released White Paper, 'A Minerals and Mining Policy for South Africa'. Official policy states that 'Government's long-term objective is for all mi neral rights to vest in the State for the benefit of and on behalf of all t he people of South Africa'. In order to achieve this objective, government is presently investigating the feasibility of imposing a financial or tax-r elated disincentive to holding mineral rights. The paper aims to present the pros and cons and to examine the alternatives which will. cause minimal disruption to the minerals industry in the perio d during which mineral rights are transferred to the State, South Africa is a country whose economic and political history Is embedded in the developm ent of its mineral resources and has inherited a system which cannot simply be wished away. Hasty or radical decisions will compound the problem, rath er than provide a lasting and widely acceptable solution. Mineral rights ownership and its impact on access to mineral deposits are d iscussed. Taxation as a possible economic disincentive is also evaluated, F inally, the value of mineral resource related information as a prerequisite to mineral policy decisions and as an alternative to mineral rights taxati on is emphasized.