The Global Mining Institute provides Mining executives with access to valuable industry research, thought leadership, events and webcasts.
The Global Mining Institute provides valuable insights.
The current economic climate, both in South Africa and abroad, has been uncertain and as a result, investors are circumspect insofar as placing their investments. The local Johannesburg Stock Exchange (“JSE”) does not seem as commodious as it was before, with various alternatives investment options, as all sectors are affected by the volatility of the current economic climate.
The Mining sector is still to reach its peak contribution to the South-African GDP of 21 percent which was attained in 1970.
During the Commodity “super cycle” mining companies could not extract materials out of the ground quickly enough. Lesser attention was paid to cost, with the markets more concerned about scale, volume and project portfolios. Today, with unpredictable demand, soft commodity prices, rising costs, political uncertainty and increasing geological complexities, profitability has become a far higher priority.
How we can help
KPMG's Mining team in South Africa is at the forefront of providing assistance to clients in the mining sector. For example, we have recently provided tax assistance on one of the largest transactions in the coal industry. With mining being one of the most important industries in South Africa, it is faced with challenging and complex landscape.
Our team consists of highly skilled and experienced professional staff, led by newly appointed Global Head of Mining for KPMG, Jacques Erasmus. Accordingly, we are well placed to provide our clients with an array of services which covers assurance, tax, risk management, deal advisory, strategy and portfolio management, cost excellence and an array of management consulting solutions.
We seek creative solutions for our clients through combining our expert skills, industry knowledge and global network. We believe in multidisciplinary teams working together, to cover all areas of assurance, compliance and mining operations.
KPMG’s Mining Tax team is also extensively involved in tax matters impacting the mining industry, for example the Davis Tax Committee’s evaluation of the mining tax regime in South Africa. On a regular basis, the team is requested to either facilitate or participate in public forums and discussions or to conduct interviews on topical issues. KPMG has also represented the industry on various matters, for example the challenges around royalty taxes, the findings by the Davis Tax Committee etc.
We also provide dedicated training sessions on mining tax for our clients on a regular basis.