The objective of this research and aim of this dissertation was to determine the potential impact of the introduction of a carbon emissions tax (hereafter CET) on the South African mining industry and this has been achieved by addressing the following three areas of research: Most urgently, a literature review was required in order to obtain an understanding of why a carbon tax or alternative system was required. A detailed understanding of the functioning of these systems was invaluable to the outcome of the study. The survey conducted, confirmed the fact that global warming and related climate change brought about by human interference, constitute both global and national complications. The study confirmed that market based instruments can assist in addressing this problem and that these are generally considered to be more effective than traditional command-and-control policies. Notwithstanding this finding, in order to ensure efficacy, careful consideration should be given to the economic climate in which they are to be implemented. Secondly, a literature review was essential in order to fully comprehend the nature of the South African economy and specifically the South African mining industry’s contribution to the aforementioned problem. The importance of the industry to the economy had to be acknowledged. It was then established that the South African economy, and in particular the South African mining industry, contribute to this predicament due to their considerable dependence on coal fired power stations for the supply of electricity. The study revealed that should this industry be adversely affected by the proposed taxation, the economy as a whole would suffer. Finally, a literature review as well as quantitative examples were used to estimate the impact of CET on the South African mining industry. This outcome was achieved by evaluating the results of taxation as opposed to the objectives of the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). The study found that the effect on most of the objectives of the MPRDA, and especially those related to job creation, economic growth and equal access for all applicants on entering the arena of the mining industry, may well be affected adversely by the implementation of the proposed CET, as the tax was found to impact negatively on the industry’s profits. It has also been assessed that the iron ore sector will be the most affected sector and that smaller companies will be affected to a larger degree than larger companies. The modus operandi and selection of allocated beneficiaries when allocating the revenue collected from the proposed CET by the National Treasury were also found to play a significant role in whether or not the objectives of the MPRDA were positively or negatively influenced by the implementation of the tax. The outcome of the study performed on the research question confirmed that, if said effect of the proposed CET on the South African mining industry was to be compared to the objective of the MPRDA, both positive and negative implications could be identified. / MCom (South African and International Taxation), North-West University, Potchefstroom Campus, 2014

The objective of this research and aim of this dissertation was to determine the potential impact of the introduction of a carbon emissions tax (hereafter CET) on the South African mining industry and this has been achieved by addressing the following three areas of research: Most urgently, a literature review was required in order to obtain an understanding of why a carbon tax or alternative system was required. A detailed understanding of the functioning of these systems was invaluable to the outcome of the study. The survey conducted, confirmed the fact that global warming and related climate change brought about by human interference, constitute both global and national complications. The study confirmed that market based instruments can assist in addressing this problem and that these are generally considered to be more effective than traditional command-and-control policies. Notwithstanding this finding, in order to ensure efficacy, careful consideration should be given to the economic climate in which they are to be implemented. Secondly, a literature review was essential in order to fully comprehend the nature of the South African economy and specifically the South African mining industry’s contribution to the aforementioned problem. The importance of the industry to the economy had to be acknowledged. It was then established that the South African economy, and in particular the South African mining industry, contribute to this predicament due to their considerable dependence on coal fired power stations for the supply of electricity. The study revealed that should this industry be adversely affected by the proposed taxation, the economy as a whole would suffer. Finally, a literature review as well as quantitative examples were used to estimate the impact of CET on the South African mining industry. This outcome was achieved by evaluating the results of taxation as opposed to the objectives of the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). The study found that the effect on most of the objectives of the MPRDA, and especially those related to job creation, economic growth and equal access for all applicants on entering the arena of the mining industry, may well be affected adversely by the implementation of the proposed CET, as the tax was found to impact negatively on the industry’s profits. It has also been assessed that the iron ore sector will be the most affected sector and that smaller companies will be affected to a larger degree than larger companies. The modus operandi and selection of allocated beneficiaries when allocating the revenue collected from the proposed CET by the National Treasury were also found to play a significant role in whether or not the objectives of the MPRDA were positively or negatively influenced by the implementation of the tax. The outcome of the study performed on the research question confirmed that, if said effect of the proposed CET on the South African mining industry was to be compared to the objective of the MPRDA, both positive and negative implications could be identified. / MCom (South African and International Taxation), North-West University, Potchefstroom Campus, 2014

Today, global warming is commonly known due to the major impact on the earth’s weather conditions. The increase in the average temperature of the lower atmosphere is causing a drastic change in weather conditions. Human intervention is the main cause of global warming and the latter will be limited if greenhouse gas (GHGs) emissions are reduced by individuals and companies in all countries around the world. Carbon dioxide (CO2) is one of the biggest contributors of GHGs and, therefore, a number of measures were implemented to reduce CO2 emissions. In 1997, the Kyoto Protocol was signed by the Annex 1 countries, of which South Africa is not part, under the United Nations Framework Convention on Climate Change (UNFCCC) to reduce GHG emissions. It is not only the responsibility of the Annex 1 countries to stabilise global warming, but all countries have to contribute to the reduction of GHG emissions. Enabling countries to meet these reduction targets, they implemented the following measures: carbon tax, Energy Service Companies (ESCOs) and carbon credits. Carbon tax has been implemented in many countries over the last decade with different levels of success. Carbon tax will be implemented in South Africa during 2013/2014. ESCOs have been implemented to assist companies with the implementation of energy saving projects. These projects will assist in reducing carbon emissions and meeting the set targets and it will also assist in reducing the effect of carbon tax. Clean Development Mechanism (CDM) projects are implemented under the UNFCCC for companies that want to register carbon reduction projects. If the projects meet the CDM registration criteria, the project can be registered as a CDM project and it has the ability to earn tradable carbon credits. These credits can be traded on national or international carbon trading markets. This study considered a combination of all the measures a company can implement to improve energy efficiency and thereby reducing GHG emissions. An evaluation of the feasibility of a carbon reduction project, the ‘Vaal River compressed air energy efficiency improvement project’ of AngloGold Ashanti (AGA) was performed to determine whether the project can be registered as a CDM project. It was concluded that AGA will be able to register the project as a CDM project and earn tradable carbon credits. Furthermore, it is recommended that AGA makes use of the option to finance the carbon reducing project by using external funding provided by EDF (the French equivalent of South Africa’s Eskom). / MCom (Management Accountancy)), North-West University, Potchefstroom Campus, 2013

Today, global warming is commonly known due to the major impact on the earth’s weather conditions. The increase in the average temperature of the lower atmosphere is causing a drastic change in weather conditions. Human intervention is the main cause of global warming and the latter will be limited if greenhouse gas (GHGs) emissions are reduced by individuals and companies in all countries around the world. Carbon dioxide (CO2) is one of the biggest contributors of GHGs and, therefore, a number of measures were implemented to reduce CO2 emissions. In 1997, the Kyoto Protocol was signed by the Annex 1 countries, of which South Africa is not part, under the United Nations Framework Convention on Climate Change (UNFCCC) to reduce GHG emissions. It is not only the responsibility of the Annex 1 countries to stabilise global warming, but all countries have to contribute to the reduction of GHG emissions. Enabling countries to meet these reduction targets, they implemented the following measures: carbon tax, Energy Service Companies (ESCOs) and carbon credits. Carbon tax has been implemented in many countries over the last decade with different levels of success. Carbon tax will be implemented in South Africa during 2013/2014. ESCOs have been implemented to assist companies with the implementation of energy saving projects. These projects will assist in reducing carbon emissions and meeting the set targets and it will also assist in reducing the effect of carbon tax. Clean Development Mechanism (CDM) projects are implemented under the UNFCCC for companies that want to register carbon reduction projects. If the projects meet the CDM registration criteria, the project can be registered as a CDM project and it has the ability to earn tradable carbon credits. These credits can be traded on national or international carbon trading markets. This study considered a combination of all the measures a company can implement to improve energy efficiency and thereby reducing GHG emissions. An evaluation of the feasibility of a carbon reduction project, the ‘Vaal River compressed air energy efficiency improvement project’ of AngloGold Ashanti (AGA) was performed to determine whether the project can be registered as a CDM project. It was concluded that AGA will be able to register the project as a CDM project and earn tradable carbon credits. Furthermore, it is recommended that AGA makes use of the option to finance the carbon reducing project by using external funding provided by EDF (the French equivalent of South Africa’s Eskom). / MCom (Management Accountancy)), North-West University, Potchefstroom Campus, 2013