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Zambia to Raise Mine Royalty in 10th Tax Change in 16 Years

  • Government plans to raise royalties by 1.5 percentage points
  • Nation’s biggest copper producer drops up to 5.2% in Toronto
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Zambia plans to increase mining royalties next year as Africa’s second-biggest copper producer seeks to reduce its budget deficit. It’s the 10th tax change miners have faced in the past 16 years.

The royalty rate will rise by 1.5 percentage points across the board, Finance Minister Margaret Mwanakatwe told lawmakers in the capital Lusaka in her maiden budget speech on Friday. The current tax rates range from 4 percent to 6 percent depending on the copper price. The government also introduced a 10 percent charge if the metal climbs above $7,500 a metric ton, she said.