Zambia’s miners stump up taxes

Zambia’s mining sector is still expected to provide tax revenues of $415 million this year, despite concerns that a reduced power supply would make the target unattainable.

The country introduced a new tax regime this April, which increased mineral royalty from 0.6% to 3% while at the same time raising corporate tax liability from 25% to 30%.

According to the Zambia Revenue Authority, mining companies paid taxes of $8.4 million in May, compared to the $1.4 million raised in monthly revenue prior to the changes.

Some mineral royalty taxes have been paid this month, but the bulk of the money is due in June under the new law.

The country’s finance minister, Ng’andu Magande, has confirmed that investors’ objections to the changes have been resolved and that Zambia is on course to achieve its target of 1.0 million tonnes of refined copper over three years.

Konkola Copper Mines (part of the Vedanta Resources group), Mopani Copper Mines and First Quantum Minerals are some of the country’s leading foreign miners.