[miningmx.com] – PROPOSALS to impose a flat 9% royalty on opencast and underground mining in Zambia as part of amendments to the country’s fiscal regime have been met with caution by the sector.
“If the reports are correct, the revised tax proposals would arguably be worse for the underground mines,’ Greg Barnes and Bonita To, analysts at TD Securities said in a note cited by Bloomberg News.
Zambia’s president, Edgar Lungu, may call back parliament to an early session to consider the proposals which also mean a reversion to a 30% corporate tax ditched last year when legislation was passed for a 20% royalty on opencast mining and an 8% tax on underground mines.
“We welcome the fact that there is progress in the matter concerning mineral royalty tax because it is vital for industry and the country,’ Shapi Shachinda, a spokesman for Vedanta’s Konkola Copper Mines unit. “However, we are waiting to see the detail when the new proposal is presented to the parliament for approval.’
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