LUSAKA, April 9 (Reuters) – Zambia’s cabinet will table changes to mining royalties on Monday after the finance and mines ministers proposed the amendments, the president’s spokesman said on Thursday.
Zambian President Edgar Lungu last month directed the finance and mining ministers to change royalties on mining firms by April 8, saying the copper-producer could consider temporarily reverting to the tax regime in 2014.
“The technical committee has finished looking at the proposals from the ministers of finance and mines. Cabinet will table the proposed changes on Monday,” presidential spokesman Amos Chanda told Reuters.
The decision to increase royalties in January for open pit mines to 20 percent from 6 percent and those for underground mines to 8 percent from 6 percent has rattled foreign mining firms in Africa’s second-largest copper producer.
Unions are also worried that jobs could be lost.
Zambia’s kwacha has gained lost ground against the dollar as the market anticipated changes to the existing tax regime in favour of mining companies. (Reporting by Chris Mfula; Editing by James Macharia)
CREDIT – Reuters