Zambia introduces 15% copper concentrates levy

The Government of Zambia is introducing new measures that will apply a 15% export levy on copper concentrates, from the beginning of April.

The Customs and Excise amendment Bill currently before the Zambian parliament, will provide a new regulatory framework that will increase revenue collection from the country’s mining sector.

In the case of the copper concentrates levy, it will also encourage copper smelting in Zambia, creating new jobs.

According to industry estimates, Zambia exports around 10% of its copper in concentrates, the bulk of which ends up in China and South Africa.

Zambia’s main copper exporters, which include South Africa-based Metorex Ltd and NFC Africa, have asked the Government to delay the new levy until the country’s copper smelting facilities are fully developed.

A number of mining companies have been investing in their copper treatment facilities over the past three years: Mopani Copper mine has been upgrading its Mufulira smelter and it can now process 850,000 metric tons of concentrates a year; Konkola Copper Mines is constructing a 250,000-ton-a-year smelter in Nchanga and NFC Africa is constructing a 150,000-ton-a-year smelter at Chambishi.

However, Zambia currently does not have the smelting capacity to handle all the copper concentrate it produces.