[miningmx.com] – ZAMBIA has approved a new royalty system that changes with the copper price in an effort to keep struggling mines open and limit job losses, said Reuters citing the southern African government.
“Cabinet approved the proposed tax measures which are aimed at sustaining operations in the mining industry, securing jobs for citizens as well as collecting more tax revenue in times of relatively high copper prices,” spokesman Chishimba Kambwili told Reuters.
Mining companies operating in Zambia including Vedanta Resources and Glencore have cut thousands of jobs and closed copper shafts in recent months with prices near six-year lows. Mining lobbies had asked for a price-based royalty structure to ease the tax burden during a period of depressed prices, said Reuters.
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