'Beneficiation' is an artless term that refers to the processing of raw minerals and metals into finished, industrial products. And a tax on chrome exports is considered one way to achieve this goal.
The South African mining sector has reacted with concern to government proposals to impose export taxes and quotas for the chrome industry and attach leverage measures to the issuance of mining rights.
The proposals emerged in an industrial growth strategy released this week by the Department for Trade, Industry and Competition.
Beneficiation is an artless term that refers to processing raw minerals and metals into finished, industrial products. And the tax on chrome exports is seen as a way to achieve this goal by supporting the domestic ferrochrome industry which has collapsed due to rising electricity prices and Chinese dominance.
One of the policy goals stated in the document is to “establish export taxes and quotas for the chrome industry”.
It said, “The review of mining legislation on the allocation of mineral rights is important to enable the government to attach conditions that will facilitate beneficiation. This change is important as it will allow beneficiation objectives to be incorporated into mining licensing decisions.”
The trick would effectively be like this: If you want mining rights, show how you plan to turn the minerals into a high-value end product in South Africa.
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