The Conversation (0)
The Wall Street Journal reported that Zambia’s cabinet has approved a proposal that would see a recent hike in mining royalties dropped. Announced last October, the new royalty rules required companies to pay a 20 percent royalty on open pit mining operations, up from 6 percent, while royalties for underground mines would rise from 6 percent to 8 percent.
The Wall Street Journal reported that Zambia’s cabinet has approved a proposal that would see a recent hike in mining royalties dropped. Announced last October, the new royalty rules required companies to pay a 20 percent royalty on open pit mining operations, up from 6 percent, while royalties for underground mines would rise from 6 percent to 8 percent.
The change comes as Newly elected President Edgar Lungu seeks to resolve a months long disagreement with mining companies over the new tax.
As quoted in the publication:
Newly elected President Edgar Lungu has directed a panel of ministers to finalize details of the proposed changes ahead of their presentation for parliamentary approval next week, Amos Chandathe presidential spokesman said Tuesday.
The development caps months of bickering between mining companies and the Zambian government and is a major relief to miners who have been struggling to cope with spiraling costs amid suppressed global metal prices.
“The President hopes that the changes will promptly eliminate market anxieties in the mining sector and forestall any potential instability,” Mr. Chanda said, adding that the decision came after “extensive” consultations with the mining industry following the sudden drop of international copper prices.