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Reduction in copper royalties under debate in Zambia

LUSAKA — Zambia’s parliament is to debate the amended mines bill which proposes to reduce copper royalties to a variable tax of between 4% and 6%, depending on the price of the metal.

The Mines and Minerals Development (Amendment) Bill also proposes to reduce mineral royalties for other base metals to 5% for both underground and open-cast operations.

The royalty would be 4% when the price of copper was below $4,500 a tonne, 5% when it was between $4,500 and $6,000 and 6% when above $6,000.

The new law also proposes to reduce the rate of mineral royalty for energy and industrial minerals to 5% for both underground and open cast mining operations.

Mineral royalty for gemstones and precious metals would be set at 6% for both underground and open-cast mining operations.

Mining lobbies had asked for a price-based royalty structure to ease the tax burden during a period of depressed prices.

Zambia cut mineral royalties for underground mines in June last year to 6% from 9% and those of open-cast mines to 9% from 20% following an outcry by mining firms.

 

Source – BD Live