[miningmx.com] – NEVERS Mumba, the presidential candidate for Zambia’s main opposition party, would review a mines royalty increase if elected in the southern African country’s national election later this month, said Bloomberg News.
Zambia raised royalties on mines and scrapped corporate tax of 30% in an effort to counter the effects of so-called transfer pricing, but the increase forced Barrick Gold to mothball its Lumwana mine while other miners said the royalty would impede future mining developments.
“The moment you raise it [the royalty] to those levels without engaging those in that field you paralyse your efforts to build an economy,’ Mumba told Bloomberg News. “I’ve already made a passionate appeal to Barrick Gold. I’ve told them to hold their fire and see what happens’ after the January 20 election, he said.
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