Zambia is holding discussions with mining companies to cut mineral royalties for underground mine operations to below 9%.

Zambia Mines Minister Christopher Yaluma said that the latest development will come into force from July.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

State broadcaster ZNBC quoted Yaluma saying that underground operations would become cost-effective with reduction in royalties.

In April, Zambia Government set the royalty tax rate for both open-pit and underground mining at 9%.

"Earlier plans were to charge as much as 20%."

Earlier plans were to charge as much as 20%.

Zambia was forced to revise the plan as its previous decision to increase royalties for open-pit mines from 6% to 20% and for underground mines from 6% to 8% in January was opposed by unions and mining companies.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Glencore, Barrick Gold, Vedanta Resources and Canada-based First Quantum Minerals are some of the major foreign mining companies operating in the country.

In April, Zambia dropped its plan to increase mining royalties in a bid to resolve a six-month stand-off with mining companies over the new tax system.

Presidential spokesman Amos Chanda then told Reuters that Zambia’s newly elected President Edgar Lungu directed a panel of ministers to finalise details on the proposed changes prior to submitting their presentation for parliamentary approval.