Cyclical mining bonanza 'not a strategy' to support fiscus in the long term, analysts warn

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Government plans to use tax earnings from the mining sector to fund social projects.
Government plans to use tax earnings from the mining sector to fund social projects.
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As mining companies ride the wave of a commodity cycle boom, they are not the only beneficiaries of the bumper season. So hefty are the tax tickets that Finance Minister Tito Mboweni this week announced the mining sector would fund most of the government's R38.85-billion support package to South Africans during the Covid-19 pandemic.

Anglo American Platinum said it had paid R16.6 billion to the fiscus through taxes and royalties, while Kumba paid R9.2 billion, and other major miners are set to follow suit.

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