The Mining Charter 2017 (released June 2017) includes measures increasing the number of holders of new prospecting rights who must be black persons.
Historically, a minimum black shareholding of 26% was required. The 2017 Mining Charter changes this percentage to require holders of new prospecting rights to hold a minimum of 50% black person shareholding (including voting rights in the company holding the prospecting rights). Similarly, the holder of a new mining right must now have a minimum of 30% black person shareholding with equal voting rights in the company holding the mining right. There are further requirements as to how the 30% black person shareholding must be held.
These changes may have certain tax implications for holders of mining rights concerning:
Read a June 2017 blog item posted by the KPMG member firm in South Africa
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.