Skip to content
Subscriber Only

South African Miners to Deliver Tax Windfall After Metals Rally

South Africa’s platinum and iron ore producers will generate additional tax revenues for the nation’s cash-strapped government as a rally in metal prices buoys their earnings, according to Morgan Stanley.

Royalty payments are estimated to climb 70% this year for the listed mining companies covered by the bank, while tax payments could increase by as much as 80%, Morgan Stanley analysts including Christopher Nicholson said in a note. Miners such as Anglo American Platinum Ltd. and Kumba Iron Ore Ltd. are reaping windfall profits from higher palladium, rhodium and iron ore prices, while a weaker rand lowers their costs.