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

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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...

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

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Table of contents

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

Tables and charts

This report includes 6 images and tables including:

Tables

  • South Africa: Proposed SARRT wipes 41% from iron ore and coal industries: Table 1
  • Table 2: Coal price assumptions, scenarios and exchange rate forecast

Images

  • Figure 1: SARRT Revenue (Base Price Scenario)
  • FIgure 2: SARRT Revenue (Price Scenarios)
  • Figure 3: Sector NPV Impact
  • Figure 4: Company NPV Impact (Base Price Scenario)

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