Lusaka, Zambia — MININGREVIEW.COM — 20 November 2008 – The Zambian government has revealed that it does not expect to reach its forecast target of raising additional revenue totaling US$415 million (R4.2 billion) from foreign mining firms. This is a direct result of the decline in global metals prices
The government had hoped to raise the additional revenue after introducing higher mining taxes on foreign mining companies.
“At the current price level, it is not possible to collect those windfall taxes we have been clamouring for,” Central Bank governor Caleb Fundanga told a media briefing in the Zambian capital.
“The falling of copper prices will have an impact on government revenue,” he added, “and the most serious consequence is that it will help trigger low growth in the gross domestic product (GDP).”
Zambia’s copper production for the nine months to 30 September 2008 rose 10.7% to 421 519 tonnes from 380 907 tonnes output for the same period of2007,” Fundanga concluded.