Mining Journal reported that South Africa will delay levying royalties on the mining industry for 10 months to save jobs as companies like Anglo Platinum Limited slash payrolls in response to the global economic slowdown.

Mr Trevor Manuel, finance minister of SA said in his budget speech to Parliament that “I propose to defer the mining royalty’s regime from this year to 2010. This provides a boost to the industry of about ZAR 1.8 billion, which will assist in minimizing job losses.”

The royalties, which had been scheduled to take effect May 1st 2009, now will be imposed on March 1st 2010. Anglo American plc and other industry members objected to the levy, saying it would deter investment. Anglo Platinum said this week it will cut 10,000 positions in 2009 as the worldwide slump pulls metals prices down.

Mr Manuel also said that the government may start an agency that would be run jointly with companies and labor officials and would invest in economic development in areas hurt by losses of mining jobs.

He added that “If the new development agency can be established this year, we will make an allocation toward its activities in the adjustments budget in October 2009.”

(Sourced from www.miningjournal.com)