Zambia confirms it will lower royalty to 6%

[miningmx.com] – ZAMBIA is to lower royalties on underground mining to 6%, said Bloomberg News which cited Amos Chanda, a spokesman for the southern African country’s president, Edgar Lungu.

The decision was taken because “the costs of production in underground mines are far higher’ than open-pit operations, which will pay the 9% rate, said Chanda. The new tax system is due to come into effect July 1.

Zambia introduced a royalty-only tax system for mines this year, charging 20% for open-pit operators and 8% for underground mines – a development that saw mining firms threaten closures and thousands of job losses.

Click here to read the full article