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South Africa: Proposed SARRT wipes 41% from iron ore and coal industries


South Africa: Proposed SARRT wipes 41% from iron ore and coal industries

Report summary

We estimate that the proposed South African Resource Rent Tax (SARRT) would have a total negative impact of US$18.9 billion to coal and iron ore valuations under our base case. Iron ore is hardest hit with a US$11.1 billion (-49.5%) impact, compared to the US$7.8 billion (-33.5%) impact for coal. Compared to the Australian MRRT, this is almost twice the dollar impact and is almost ten times the percentage impact on Australian iron ore producers and 33 times the percentage for coal...

What's included?

This report includes 1 file(s)

  • South Africa: Proposed SARRT wipes 41% from iron ore and coal industries PDF - 437.71 KB 3 Pages, 2 Tables, 4 Figures

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • Executive summary
  • Impact on government revenue
  • Impact on sector and company valuations

In this report there are 6 tables or charts, including:

  • Executive summary
  • Impact on government revenue
    • Figure 1: SARRT Revenue (Base Price Scenario)
    • FIgure 2: SARRT Revenue (Price Scenarios)
    • South Africa: Proposed SARRT wipes 41% from iron ore and coal industries: Table 1
    • Table 2: Coal price assumptions, scenarios and exchange rate forecast
  • Impact on sector and company valuations
    • Figure 3: Sector NPV Impact
    • Figure 4: Company NPV Impact (Base Price Scenario)
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