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Zambia’s government will cut mineral royalties for underground mines to 6%, lower than the 9% proposed earlier, the presidency said on Friday.
“Mineral royalty tax will be reduced to 6% from the earlier proposed 9%. It will remain at 9% for openpit mines,” presidential spokesperson Amos Chanda told the media.
The government of Africa’s second-biggest copper producer set the royalty tax rate for open cast and underground mining at 9% in April, rowing back from earlier plans to charge as much as 20%.
Zambia’s decision to increase royalties for open pit mines to 20% from 6% and those for underground mines to 8% from 6% in January met with an outcry from unions and producers, forcing the government to review the plan.
Some of the foreign running companies in Zambia include Glencore, Barrick Gold Corp, Vedanta Resources and Canada’s First Quantum Minerals.
