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Tuesday, June 2, 2020

President Edgar Lungu Directs Changes to Mineral Royalty Tax

Headlines President Edgar Lungu Directs Changes to Mineral Royalty Tax

President Edgar Lungu at Cabinet meeting at Statehouse.Pictures By EDDIE MWANALEZA/STATEHOUSE.
President Edgar Lungu at Cabinet meeting at Statehouse.Pictures By EDDIE MWANALEZA/STATEHOUSE.

President Edgar Lungu has directed Finance Minister Alexander Chikwanda and Mines Minister Christopher Yaluma to effect changes to the 2015 Mineral Royalty Tax by April 8th, this year.

In letters to the two ministers, President Lungu has stated that after receiving submissions from individual mining companies and the Chamber of Mines, he has noted that the new tax regime poses a challenge to some mining houses.

The President also noted that some mines are high-cost while others are low-cost operations.

President Lungu has reiterated government’s resolve to putting dialogue at the centre of the governance systems.

This is contained in a statement sent to media News by President Lungu’s Special Assistant for Press and Public Relations Amos Chanda.

Below is the full statement


Lusaka, (WEDNESDAY, 25 th March 2015) — His Excellency Mr. Edgar Chagwa Lungu, President of the Republic of Zambia has directed the Minister of Finance and Minister of Mines and Minerals Development to effect changes to the 2015 Mineral Royalty Tax by 8 th April 2015.

In letters to the two ministers today, President Lungu stated that after
receiving submissions from individual mining companies and the Chamber of Mines, he has noted that the new tax regime poses a challenge to some mining houses. The President also noted that some mines are high-cost while others are low-cost operations.

“Obviously the mining industry has been affected by copper prices on the international market. It is clear that this unfavourable economic trend globally has been mainly on account of weak global demand for copper,” the Head of State said.

“I wish to take this opportunity to reiterate my government’s resolve to continue putting dialogue at the centre of our governance systems. Dialogue between my government and the mines shall continue.”

The President emphasized that government will always be amenable to progressive ideas that will assist in addressing challenges in the mining sector.

The President notes that these challenges cannot be resolved overnight but he is confident that these matters are not insurmountable.

“I have therefore directed the Minister of Finance and the Minister of Mines, Energy and Water Development to review the mining tax regime and make recommendations to Cabinet by 8 th April 2015,” the President directed.
Among the options the President has asked the ministers to consider, are the following:

  • Status quo but negotiate interim fiscal arrangements for operations that are most affected on a case-by-case basis;
  • Identifying potential legal or regulatory modifications to the existing
    2015 fiscal regime that could be readily passed and implemented;
  • Defer implementation of the 2015 fiscal regime, and
  • Temporary reinstate the 2014 fiscal regime as a more amicable regime is negotiated.

The President also directed that the ministers should also use the current legislation and administrative procedures to ensure that mines that are facing severe challenges are assisted.

The Head of State has meanwhile called on all individuals and corporate citizens to comply with the existing tax laws.

[Read 43 times, 1 reads today]


  1. Why was it implemented without counsultation in the first place? Why does PF not learn to govern properly kanshi. This is very damaging…


    • Well done on this one President Lungu. For those in the UK do not miss the opportunity to listen to HH on Tuesday 31 March. It will be a great moment to ask the leading opposition leader bout his vision.

    • When is Nsanda’s funeral? I hope before 8th April. I don’t want excuses from either malume Chikwanda or Lungu himself.

    • @Nostradamus, even if ichililo will be on 8th apil uncle dizzy Lungu may not attend, he is still very busy na ba na daliso,, honeymoon trips overseas,,,,`dont disturb` sign on his door.
      otherwise Big malume red wine Chikwanda,,, no doubt he will be there front row

    • PF is govt by simpletons, for simpletons. Same Chikwanda introduced the SI that had to be withdrawn by Sata, again the same Chikwanda introduced a tax that has to be withdrawn…why cant this old tired man be fired? PF please stop chipantepante

    • @Ndobo, remind their Lungu that there is no “sleeping” with wife when there is “big” funeral like Nsanda’s.
      People should be reminded what happened at Sata’s funeral… The guy just came from eastern province…. and we heard, hhahahahaha Lungu naena wa ku Eastern province kaa.

  2. While you still in Zambia, can you please appoint someone to get a Lilasha and stick it in Nsanda, you know that place where the Sun never shines’, just like we did for MSC and FTJ and will do you that favor when you are gone!

  3. Now every time I see a picture of ka Lungu without those body guards close by, I get scared. It will ruin his new suit if he takes another tumble.
    ha ha

  4. Thats my president,ladies and gentlemen I nw present u tha man we had all bin waitin 4,he has listenin here and he is very futuristic

    • Visionless as usual. He has not addressed anything just pushed the problem somewhere. The old tax system with the mines was 6 per and the mining royal tax budgeted for is 20 per. Now where is he going to get the deficit of 14 per to meet the budget requirements for 2015? Will it come Kaloba, increase in income tax or a hike in prices?

    • He looks very thin and unwell! Look at that thin leg! And his face, does not portray a beacon of any happiness! So take your head out of his arse and start seeing the facts that are so bare for all to see!! That is far enough, arse licker!

  5. Encouraging development. Lungu is now making clear who is in charge. The relationship with these investors has to be properly managed. This doesn’t mean giving into thier every demand, mutually beneficial and practcal solutions should always he the intended outcome. It looks like Mwanakatwe has prevailed and president CHIKWANDA has been over ruled. ABC CHECK!

  6. There it is after all that rehitoric during the campaigns the coward decides to listen to Chamber of Mines which only looks out for the interests of its members…not surprised. Zambians will always get leftovers from their resources.

    • Jay Jay 100% agree with you Chamber of Mines only looks out for the interests of its members. These *****s they don´t care about the wellfare of the nation but their bellies and children going to expensive schools.

  7. PF is really going through a metamorphosis. There is a mojor policy and image struggle that is slowly manifesting itself. There is a very powerful old guard that wants to stall any mordern approach to governance both in the politically and economically. Governance is an evolving phenomenon and if the PF refuses to evolve it will render itself extinct. Lungu is trying to work through a very delicate line. The old guard has the money and the new generation has the grassroot organization. The question is who among the old guard will back the reform? Inclusion will be key. Exclusion will certainly lead to implosion. Edgar Chagwa Lungu CHECK!

  8. Indicative of weak leadership in Lungu. Mines will get away with what they want, the way they want it. Poor Zambians will never negotiate their tax regime. They will continue to pay for the roads so that mines can haul their copper on them. In NW people are being displaced/moved for sake of mines; mines that will decide what not to pay! Up to now the Gvt has no idea that precious stones are being mined by these same Companies and taken out in private jets. In the end Zambia will only have a degraded & polluted environment to show for being called “the second largest copper producer in Africa” Welcome to poor, naive, weak leadership!

    • I thought the English was clear: Some mine companies! Or were you taught that “some” means “everything”? Sue your teacher my friend or else take extra lessons than insulting the President.

    • Its not week leadership, that is what even HH is telling the mines he will do. infact HH wants the mine not pay taxes on exchange with employment

    • How is this good governance do you know what that really means? Don’t you remember what he was saying on RSA TV two weeks ago? The man is contradictory and very weak.

  9. Good governance my foot. You create an impasse for absolutely nothing. We have lost since the kwacha was/is affected by this impasse. After the situation took a turn for the Worst you put ur tail between your legs and consult with the mines. If am an investor I will think twice, experiments at government level should not be the order of the day.

  10. Ba Lungu you can’t be wishy washy with investors like that bwana.

    Investors like predictability and firm policies ,not changes and whims with every new administration.

  11. Knowing the true strength of your position is a very important. Lungu and Chikwanda tried to over play thier hand and the mining companies called thier bluff and they folded. Unfortunately the ripple effects of a stalemate would have had dire consequences for our already crumbling economy. These mining companies where ready to abandon. Then what do you do with all the unemployed that would remain behind. Copper is not as profitable for them as other operations. High operational costs and relatively low returns compared to other natural minerals. Our only future is in agriculture and tourism. Chikwanda over played his hand and got burned. Lol. This government really needs direction.

    • People the act was signed into law by Guy Scott. Those of you from UpDn who don’t have cow dung for brains in their heads will realise that ECL was not president then. ECL is looking at all the things your muzungu opusa signed into law.

  12. Oddly enough I am just about to go into cinema to watch GUNMAN, with Sean Penn. a hard violent movie based on Mining Conglomerates and fabled Congo Mines Minister assassinated for Mining corporate greed. 4th time am watching it since it came out last week or so.

    This is a lot of to-ing and fro-ing. personally I am not happy with any changes. I firmly believe the gov’t needs to nationalise our Mines because we can’t get any reasonable Revenue from it. All this reimplementation of 2014, or setting aside is aDEAL BREAKER with me. Gov’t controlled by foreign investor conglomerates at the cost of poor is NOT a win win situation.

    I would urge all Zambians to watch GUNMAN when it comes out in Zambia ( if they’ll dare to let you watch it).

    PF, this is a minus 45% deduction…

  13. There is still more time to have a win win situation See also the assumptions in cash flows projects and see the effect on slump in taxes as a result of volumes and reduced royalties

    I am sure when the two ministers Go back,The kateka will see and consider the win win situation here in line with the rest on the continent

    The difference in Operational risks is a financial fixed costs that risk in that mine factored in those forecasts and financial plans reflecting in the cost of capital

    Its a normal systematic business risk and those unsystematic are supposed to be taken care of in a developed mining sector

    An earlier proposal to defer was correct to comform to that Asset…

  14. Beta on that best performing mining ensuring efficiency that goes into volumes in productivity

    Lets also see the yields in sovereign bonds for the Ten yr. and pay particular attention to the revenues side given the rating scenario forecast and national accounts

    Zambia as a copper commodity driven country is very weak and prone to shocks in volumes and prices and the effect of two is sudden

    Reducing in line with the rest and since mining is the same industry similar in techniques to such a mine across but those inherent factors often are compensated by the grade otherwise no incentive to venture in

    bench marking will also be helpful also

  15. Sellout why are you bending over to mining companies’ whims? Are you saying we should have a different law for different copper prices? Tell us so we can anticipate

    • Zambia has no muscle over this. Even Mwanawasa capitulated on his windfall tax. The mining companies just started to inform their employees that they will reduce labour in order to meet the tax proposed by the government. It is easy to talk if you are overseas. You criticise Mugabe for ruining Zimbabwe but forget that Mugabe was just trying to get the wealth for Zimbabweans without realising that he was walking on hot ambers. The problem was created when we resold the mines and it will take a miracle to realise our dream.

  16. “Ndaje Kahks” LPM never capitulated on windfall tax you bumhead. Why just every silly action like that. Just accept you have dunderheads and corrupts for leaders. Windfall tax was removed by corrupt RB.

  17. That is our very own beloved His Excellency, the voters’ choice, well done!
    However, in future let those honourable ministers think through their plans and decisions. Even a Grade 12 drop out could read trouble with that new mining fiscal regime, shame on some so called graduate economists!
    And don’t allow ABC to make national decisions based on blackmail by the Past news, they made so much noise on mining taxes and went eerily quiet as soon as Chikwanda’s decisions backfired. Then they resurfaced with a u-turn, this time criticising and ridiculing the same ABC and the President.
    Beware, that Past and its Mmembe have no principles at all, typical of evil men.
    And where are ActionAid Zambia (Pamela Chisanga), Chief Mphande, or John “false bishop” Mambo in all this

  18. The only way forward in all this confusion is for the mines to be owed by Zambians. These foreign entities just played cards well and the government of simple men has buckled under the pressure. Get one thing straight, mining companies, later on foreign investors have no interest in paying taxes and will throw all the tantrums to achieve that. Since just making noise about the increased mineral royalty tax rate failed to persuade the minister, they now grouped themselves and cut back on copper exports thereby causing the shortage in foreign currency and hence the depreciated Kwacha…..very simple to see. The winner in this whole matter, the foreign investors, the losers-the Zambia people!

  19. Under Sata we had just poor planning (CNP), but now we have “No idea about what planning is”but it is just to be in statehouse and give directives. TROUBLE LOOMS IN ZAMBIA. In the meantime ZINGULILA WORLD by EL while time lasts. ARE YOU SURE THIS GENTLEMAN IS READY TO RULE ZAMBIA OR IS JUST EXPERIMENTING, ESPECIALLY THAT HE IS NOT WELL.

  20. @Jeko: Most of us left Zambia because there was no hope. Most educated Zambians will only come back if the Government implements proper policies that embrace sound investment. I wouldnt risk my hard earned cash for such mediocre government.

  21. I hope you are seeing also the Kitumba project initial business assessments as it come up 2016

    The operational effectional effectiveness must be sophiscated planned for long-term fore seeing these issues being contested here

    Any good planned mining operation will integrate its Enterprise optimisation -business plans with its INITIAL BUSINESS ASSESSMENTS especially for normal business operational effects in risks such as sales and costs that other wise take care of and not taken as an extra ordinary impairment issues but normal trending issues in mining operations financial and other

  22. All partners to the operations must register a return over their investments and fore partnerships to continue in mutual interest ,one should not carry the burden as a gain for the other in normal business operations If a dividend is given, which is a signal of return, all must get theirs also

    Therefore integration of The Initial business assessments IBs to with Enterprise optimisation EOs revised over the sophiscated long-term horizon covering production and other realising that return living anyone in a win win situation

    integration of EO and BI over the longterm

  23. All partners to the operations must register a return over their investments and fore partnerships to continue in mutual interest ,one should not carry the burden as a gain for the other in normal business operations If a dividend is given, which is a signal of return, all must get theirs also

    Therefore integration of The Initial business assessments IBs to with Enterprise optimisation EOs revised over the sophiscated long-term horizon covering production and other realising that return living anyone in a win win situation

    integration of EO and BI over the long-term in those mining operations will be very helpful and any systematic risks taken care off and insured unless unsystematic

  24. Chikwanda should be fired for not consulting widely before taking his crazy ideas to the president. first it was the SI’s now this mine tax saga, he was going after KCM but forgot Zambia has other struggling mines that will take a bite from his bitter concoctions. old bally should retire fast fast so…….

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