Barrick Gold Will Continue to Operate Lumwana Mine While Awaiting Royalty Changes

Reuters reported that Barrick Gold (TSX:ABX) will continue to operate its Lumwana mine in Zambia pending changes to mining royalty taxes in the country. Barrick announced in December that it would suspend operations at Lumwana due to the change.

As quoted in the publication:

Barrick had said it would suspend operations after Zambia hiked mineral royalties for open pit mines to 20% from 6% in January. Major staff cuts to Lumwana’s 4 000 workers were planned for March, Toronto-based Barrick had said.

“We are encouraged by the president’s recent statement and will carry on operating at Lumwana while we await details on the government’s proposed solution,” Barrick spokesperson Andy Lloyd said in an email in response to a query from Reuters.

The new royalty plan, which has rattled unions and mining companies inZambia, Africa’s second largest copper producer, also increased the royalty tax rate on underground mines to 8% from 6%.

Click here to read the full Reuters article.