Anglo American joins efforts to create sustainable mining taxation solutions

Anglo American joined representatives of government, civil society and other stakeholders in the mining sector at a global conference in Lusaka to discuss the future of resource taxation, as part of the launch of a new guide on the subject by the Inter-governmental Forum (IGF) on Mining.

Those attending were seeking to find effective solutions to promote transparency and sustainable development in the mining sector.

The conference was officially opened by the Minister of Finance and National Planning Dr Situmbeko Musokotwane, who expressed confidence in the three-day event’s potential to facilitate constructive discussions and generate innovative solutions surrounding mining taxation.

Anglo-American’s Lead Economist, Benjamin Jones, commended the government of Zambia’s emphasis on investing in research in the context of ambitions to develop downstream processing capacity in critical raw materials value chains, stressing the broader need to understand the market and investment context when designing policies.

He said: “One of the challenges tax policymakers and administrators are facing is the extreme levels of price volatility in some mining products that creates problems with the predictability and measurement of taxable value. However, benchmark prices for some of these rapidly growing materials markets are emerging which help measure value with greater accuracy and ease”.

“Anglo American is committed to participating in multi-stakeholder discussions aimed at addressing some of the ongoing challenges surrounding mining taxation, and ensuring any future mining tax reforms serve to balance the needs of host countries while preserving incentives for mmuch-neededinvestment in the sector.”

David Spencer, Anglo American’s Head of International Tax, ccommented on the conference’s topic “It is important to set the right frameworks to encourage the significant amount of mining investment required to address climate change. The world needs a lot more mining to transition to net zero and we must encourage and enable the required investments in a way that also benefits the countries that host those resources. Finding this right balance would be wa in-win for governments and investors. The mining regime should be considered holistically, and certainty is key to investors given the long-term nature of mining.”

The dialogue between Anglo American and key stakeholders underscores their shared commitment to address the challenges of mining taxation and promote sustainable socio-economic development in the country.

The Global Conference on the Future of Resource Taxation served as a platform for constructive discussion and knowledge-sharin, and marked a significant milestone in the ongoing efforts to create a transparent, equitable and prosperous mining sector in Zambia and other resource-rich countries.

Forming part of its global greenfield discovery programme, Anglo American is conducting exploration activity in Zambia to identify potential opportunities in critical minerals, including copper and cobalt. The company recently entered a joint venture agreement with Arc Minerals plc. Once the conditions of that transaction are satisfied, Anglo American will have the right to retain up to a 70% shareholding in the Joint Venture company to explore Zambia’s North-Western province for copper and cobalt.

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