Australian mine tax an option for South Africa

South Africans getting "raw deal," said deputy minister for economic development

South Africa is thinking about overhauling its minerals royalties regime to cash in on high commodity prices and may use Australia's controversial resources tax as a template, a minister said on Thursday.

"We South Africans are getting a raw deal," Enoch Godongwana, deputy minister for economic development, told Reuters on a visit to Australia.

Godongwana, a key figure in economic policy-making, took aim at the mining companies that dominated the economy for much of the 20th century, accusing them of making super-profits out of the soaring price of metals such as gold, platinum and chrome.

South Africa is the world's biggest platinum producer and number three gold producer, although output is declining.

"They have taken the wealth, they've taken the gold, they've taken everything," he said. "The problem is the golden eggs are not being shared. We must be able to catch up with the commodity boom."

Similar pressure last year in Australia led to a government push for a 40 percent minerals tax on the massive profits being made by mining companies, although this was watered down to 30 percent after a huge corporate backlash.

However, Godongwana said such a move was one of several options being examined by the National Executive Committee of the ruling African National Congress (ANC) party.