SOUTH Africa's mineral royalties tax is working well and the government should not overburden a sector already hit with labour strife and work stoppages , M inerals Resources Minister Susan Shabangu said yesterday.

"When looking at how we phrased our tax system and benchmarked it internationally, I would say it is competitive and working well," Shabangu said ahead of her budget vote speech in Parliament.

"We also have to look at the mining industry, ensuring we don't create a tax burden in the sector, which will make the industry non-competitive," she said.

The ANC has proposed a significant hike in taxes on the mining sectors, similar to Australia, which want the state to share more of the profits during commodity booms.

Shabangu said a task team report on the impact of Section 54 work stoppages, which has helped curb production in the platinum industry, was completed and would be unveiled at a yet-to-be-convenened stakeholder meeting.

"We think the report is sufficient to inform us on how best we cooperate, but the key issue is to what extent do the various stakeholders understand Section 54," she said.

Shabangu did not want to be drawn on the report's conclusions, after it investigated whether the enforced safety-related stoppages crimped output and profits.