Zambian government rethinking steep royalty hikes that went into effect on January 1.
The new rules only apply to future payments and not amounts already owed.
Newly elected President Edgar Lungu wants to keep mining royalties at 20%, as opposed to the 6% companies were paying a month ago.
The situation may soon change, as authorities have began talks with the country’s top miners, signalling the possibility of a compromise over the country’s new tax regime.
Despite the government announcement Tuesday that it will push ahead with plans to more than triple mining royalties.
Move will leave up to 12,000 jobless and it is likely to sour the already fractious relationship between the government and mining companies.
The Canadian giant had earlier said it would consider such a move in the event the new tax regime was approbed.
There are indications Zambia may be backing away from plans to impose a 20 per cent royalty rate on open pit mining in the country, a top executive with Barrick Gold Corp said on Thursday.
The increased mining tax framework included in Zambia's 2015 Budget earlier this month has been subject to criticism as, according to the Chamber of Mines of Zambia (CMZ), it will reduce the country's attraction for mining investment and reduce employment.
The miner, Zambia's largest foreign investor, operates Kansanshi mine, the eighth largest copper mine in the world, as well as the country's biggest.
Energy and Water Development Minister Christopher Yaluma says security wings have managed to trace some illegal gold miners and dealers on the black market in the ongoing investigations.
Underground mining royalties will go up from 6% to 8%; underground taxes now 20%.
Zambia’s mines minister says the company has not officially communicated the government its intentions as required under the country's law.
The company is cutting 169 jobs at the mine.
The standoff marks a major setback for the miner, which is in the process of upgrading its copper assets in Zambia hoping to increase output by at least 50% by 2017.
The business group argues the sector must be nurtured to generate the revenues needed for the country’s economic diversification.
Rule requiring exporters to produce import certificates from destination countries in order to claim tax refunds will be waived beginning Sept. 8.
Good news for the country's copper miners that have been seeking more than $600 million in unpaid tax refunds.
The European Investment Bank will not make public the findings of a 2-year tax-avoidance investigation into the Swiss giant's Zambian copper operation.
Zambian fiscal regime highly uncertain.
Africa's number two copper exporter seeks IMF assistance.
Mining companies in Zambia use about 68% of the country’s electricity, while less than a quarter of the population has access to it.
It will connect the landlocked country's vast copper mines to the Atlantic coast.
Zambian government wants to talk it over.
Now the duty is on all semi-processed base metals, including copper.
New substation to facilitate reliable power supply to copper mining operation in Zambia.
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