ARTICLE · 24 FEBRUARY 2014

Diesel Refunds In Mining: Processing Is Out!

KPMG, South Africa

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Historically, the processing of ore was a contentious issue from a diesel refund perspective, due to the various interpretations held by SARS and industry participants in the diesel refund scheme.

South AfricaTax

Venter Labuschagne

Llewellyn Jordaan

Historically, the processing of ore was a contentious issue from a diesel refund perspective, due to the various interpretations held by SARS and industry participants in the diesel refund scheme.

Accordingly, there was a constant debate as to whether various processing activities constitute qualifying mining activities or not.

On 13 December 2013, Note 6(f)(iii)(cc) to Part 3 of Schedule No 6 to the Customs and Excise Act, No 91 of 1964 ("the Act") was amended (with retrospective effect from 1 January 2011) to read as follows:

"Operations for the recovery of minerals being mining for those minerals including the recovery of salts but not including any post-recovery or post-mining processing of those minerals."

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