A PROPOSED overhaul of Zambia’s mining tax regime would hit exploration activities in the country’s sector, said Reuters citing a statement from an organisation that represents junior mining and exploration firms.
“Dramatically increased exploration activities are now required, more than ever, if Zambia is to remain a leading copper producing nation,” said Geoffrey Mulenga, president of the Association of Zambian Mineral Exploration Companies (AZMEC). Zambia is Africa’s second largest producer of the metal.
Zambia plans to introduce new mining duties, replace Value Added Tax with sales tax and increase royalties to help bring down mounting debt, its finance minister said while delivering the 2019 budget speech last month, according to Reuters.
Mineral exploration is an inherently high cost and high risk activity, Mulenga was quoted as having said. He added that no new viable copper discoveries had been made in Zambia over the past decade.
