'A rare victory for taxpayers': Richards Bay Minerals wins royalties battle with SARS

In a decision that could have a significant impact on revenue collection from mining companies, the High Court has sided with Richards Bay Minerals (RBM) over how to calculate the royalty rate on its multiple commodities.

The mineral sands producer and local subsidiary of global mining giant Rio Tinto took the South African Revenue Service (SARS) to court over the interpretation of the Mineral and Petroleum Resources Royalty Act.

The ruling may now benefit other mining companies producing more than one mineral from their operations, but could be bad news for others, according to law firm ENS, which helped represent RBM.