Govt forgoes P160m in copper royalties

Mowana Mine was closed last December
Mowana Mine was closed last December

Last year’s decision to defer payment of royalties by struggling copper miners has cost government P160 million in potential minerals revenues.

Answering a question in parliament this week, the Minister of Minerals Energy and Water Resources, Kitso Mokaila said the deferred royalties from copper mines in total amounts to $14.2 million (P160 million) from two companies that were in operation last year.

“Government attempted to save operations of copper mining companies by deferring royalties due in order to assist cash flows and mitigate job losses. Messina Copper which operates as African Copper owes $7.7 million (P86.8 million) while Tati Nickel Mining Company owes $6.5 million (P71.8 million),” he said.

Editor's Comment
The corrupt must be punished

The findings reveal a disturbing pattern of misconduct and lack of transparency that cannot be ignored.The Tribunal, led by Judge President Justice Kabelo Lebotse, has rightly condemned the Ministry for its eyebrow raising conduct in awarding a P1.8 billion water tender to China Civil Engineering Construction Corporation (Pty) Ltd and Zhong Gan Engineering & Construction Corporation (Pty) Ltd.The award was made despite alleged clear evidence that...

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