Zambia to Announce Decision on Mineral Royalties on April 13

Zambia will on April 13 announce a decision on changes to higher mineral royalties that came into effect this year and that companies have said would lead to thousands of job losses.

The government of Africa’s second-biggest copper producer will announce its position after a Cabinet meeting on the day, Amos Chanda, President Edgar Lungu’s spokesman, said in a text message Thursday.

Lungu last month directed Finance Minister Alexander Chikwanda and Mines Minister Christopher Yaluma to come up with recommended changes to the tax system by Wednesday. Barrick Gold Corp., the world’s biggest producer of the metal, said it would suspend operations at its Lumwana mine because of lower prices and the new system that replaced a tax on profit.

The Zambian government will probably return to a two-tiered system that comprises profit tax and lowered royalties “followed by negotiations over the course of 2015,” Will Pearson, Lusaka-based managing director of Triskel Africa, said in a research note posted to the investment advisory company’s website Wednesday.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE