An ANC report on the mining industry rejects nationalisation of the sector, but nevertheless proposes fundamental changes, City Press reported on Sunday.
Nationalisation would be unaffordable, as the government would need to raise R1 trillion to buy out listed mining companies, according to the report. This exceeds the entire government budget.
The proposals include a 50 percent tax on the sale of mining rights to prevent speculation. A windfall tax of up to 50 percent on super-profits, defined as a return on investment of 22 percent, is also included.
However, the royalty tax would be reduced from four to one percent.