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'Chrome exchange is better than export tax'

20 Jun 2012

According to Business Report, Iraj Abedian, a special adviser to Mineral Resources Minister Susan Shabangu, said that the local mining sector should focus on introducing a chrome exchange instead of pressing for a proposed R829 per ton tax on raw chrome exports that would not be sustainable in the long term.

South Africa, which holds 70% of the world's known chrome reserves, should rather introduce a chrome exchange similar to Canada's producer-led potash marketing arm, Abedian said, adding that a chrome exchange would go a long way towards "maximising the national interest." On investment, the government should avoid being bullied into financing infrastructure that would only benefit the private sector at the expense of the poor. According to Business Report, Abedian also suggested similar exchanges for platinum and other mineral commodities where South Africa is a major supplier.

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