The Zambia Chamber of Mines (ZCM) says a two-tiered mineral royalty tax rate differentiated by mining method is not conducive to the long term health of the industry and government revenue.
The Chamber has since reiterated its support for the application of one mineral royalty tax rate for all mining operations.
Chief Executive Officer Maureen Jangulo Dlamini says the two-tiered mineral royalty tax rate 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.
Mrs Dlamini says Zambia would be the only country in the world to enforce different royalty rates based on mining method.
She adds 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.
Mrs Dlamini further states that 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.