The Zambia Chamber of Mines, a body representing mining and allied industries in Zambia welcomes the efforts to date of the Republican President, His Excellency, Mr Edgar Chagwa Lungu and members of the Government to work with the mining industry to effect changes to the 2015 Mining Tax Regime.
The Zambia Chamber of Mines and its members are committed to working with the Government to achieving a win/win situation that will allow them to sustain operations, earn a return on their capital and encourage future investment in the industry while benefiting Zambia through protecting jobs, supporting local communities, and contributing to Government revenue.
The Zambia Chamber of Mines and its members believe that a key ingredient to achieving a sustainable win/win solution is for Zambia to have in place a fiscal regime that is able to attract investment in an increasingly competitive global environment. In relation to the Mineral Royalty Regime, the Chamber wishes to reiterate its support for the application of one mineral royalty tax rate for all mining operations. A two-tiered rate, differentiated by mining method, is not conducive to the long term health of the industry and government revenues. It does not address the need for continued investment in the country’s mines, nor does it address the fact that there are some opencast mines with higher operating costs than underground mines and vice versa. Zambia would be the only country in the world to enforce different royalty rates based on mining method.
The Chamber maintains their recommendation that the 2014 fiscal regime is reinstated for all operations whilst consultation takes place for a more amicable regime with all relevant stakeholders.
Issued by:
Maureen Jangulo Dlamini (Mrs.)
CHIEF EXECUTIVE OFFICER
ZAMBIA CHAMBER OF MINES
