Several mining companies running into negative margins have already reported their positions to the South African government in compliance with Section 52 of the Mineral and Petroleum Resources Development Act, which deems mining companies to have entered dangerous territory when margins fall below 6%. Some mines that had 30% margins during the 2013 gold industry wage talks have margins of less than 10% today, with several warning that the combination of new Eskom electricity tariffs and an enforced payment of carbon tax as envisaged will push them right over the edge.