Zambia – Zambia mining minister Christopher Yaluma has revealed that the Zambia mining royalty tax for underground mines will be cut from the current 9% to 6% from 1 July this year.
This will ensure a competitive field between both open cast mines and underground the minister said, speaking in Lusaka recently. Royalty tax for open cast mines will remain at 9%.
In January, newly inaugurated Zambian President Edgar Lungu revealed the country’s new tax regime which at the time included increasing levies for open cast mines from 6% to 20%, while those for underground mines would rise to 8%. In April however, the royalty was dropped to 9% across the board – Zambia’s response to severe outcry from industry and its negative impact on mining profits, closures and job losses.
The mine tax system, adjusted during a Cabinet meeting in April this year, also re-introduced a 30% corporate income tax on mining operations.
Vedanta Resources’ CEO Tom Albanese has welcomed the news as will all the underground mining players in Zambia who are struggling already with lower copper prices.