Friday, December 7, 2012

S.Africa moves closer to iron ore, steel export tax

JOHANNESBURG (Reuters) - South Africa's cabinet has endorsed a report recommending the introduction of export taxes on iron ore and steel, where appropriate, to push producers to sell more of their products domestically.

The government of Africa's biggest economy has been looking to protect local manufacturers who have been struggling to pay export-level prices.

"The manufacturing industry has been seriously impacted by the price increases that happened globally in iron ore, which means iron ore producers have been biased towards exports, disadvantaging the local market," Phumla Williams, a cabinet spokeswoman, told reporters on Thursday.

The recommendations, scheduled for "urgent implementation", also seek to boost the domestic use of steel, especially as South Africa embarks on a massive infrastructure investment programme that includes new railway lines and ports.

Williams could not provide details on the potential tax but said the relevant ministries, which include the departments of minerals, trade and finance, would look into its implementation.

South Africa's market is currently dominated by Africa's biggest iron ore producer Kumba Iron Ore, a unit of Anglo American and the continent's biggest steel maker ArcelorMittal South Africa.

Source: http://news.yahoo.com/africa-moves-closer-iron-ore-steel-export-tax-111358894--business.html

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