This will require those who presently lead this industry to behave with both imagination and generosity. With regard to the mineral rights regime, what is required is certainly a system which encourages broad access, but also a system which optimises the mining of ore bodies. Platinum, diamonds, gold, coal and copper are not wealth when they are held firmly in their host rock. They can only become wealth when they are mined at a cost below that at which they can be sold. The second issue is that of mining taxation.
Mining is a cyclical business.
Deep level, narrow vein mining often requires huge capital spending for long periods of time before the first rand of revenue is produced. South Africa's mining taxation system, particularly in regard to formula taxation in gold, recognizes the price cycles. In regard to the immediate expense, it recognizes both risk and lead times. Clearly, at the bottom of price cycles, this produces low levels of revenue from mining tax. Yet, over time, only a globally attractive mining tax regime will attract the long-term investment needed to convert ore bodies into wealth.