Government to reduce mineral royalty tax for underground mines to 6%


Government has agreed to reduce mineral royalty tax for underground mines to 6 percent from a proposed 9 percent in a bill to be presented to parliament for approval later this month.

Special assistant to the President for Press and Public Relations Amos Chanda told Bloomberg that the decision was taken because the costs of production in underground mines are far higher than open-pit operations.

Mr Chanda said open-pit mines will pay the 9 percent rate.

The new tax system is due to come into effect on July 1.

Companies including Glencore Plc and Vedanta Plc operate the biggest underground mines in Zambia, Africa’s No. 2 copper producer, and stand to benefit the most from the royalty cut.

Government introduced a royalty-only tax system for mines this year, charging 20 percent for open-pit operators and 9 percent for underground mines.


  1. This is a rip off.

    Just because the politicians are comfortably remunerated doesn’t mean that Zambians too are comfortable for government to throw away our resources for peanuts.

    President Lungu and his government must put our interests first.

  2. down down goes the mines tax while up up goes the tenants/landlords tax. is this pro-poor?

  3. Mwebantu please help some of us understand this. Why is the underground mine being taxed lower? Does the government want to discourage open pit mining? if so why? Does Zambia have more open pit mines than underground mines?

  4. Ok – by any measure this is sad development if it is true. I hope this is all false as 9% was already unacceptable compromise. Haven’t we got erudite lawyers to negotiate on behalf of the government. Is it really harder to mine in Zambia than Chile where taxes are in double figures. I am sure the Govt will do the honourable thing and relent. 9% has to be retained at all costs

    • What you need to understand is, we have a Very Corrupt Cabal in Government & State House!!
      These Crooks are in it for themselves, & not the suffering citizen.
      They have recieved massive Kickbacks for reducing Mining Tax, & they are now secure with their Offshore accounts, so in the event they are turfed out of power, they can live comfortably abroad like Attan Shansonga.
      Zambian’s never cease to amaze me, as they are victims of the same scam over & over again!

  5. That is a workin govmt we have,ECL is the best thing to hav ever happend to zambia.He always has good plans for the country

  6. There is something SERIOUSLY WRONG with this PF govt! Re-electing it in 2016 will be a disaster of titanic proportions! No govt sane of people behaves like this.

    • I agree – as long as the tax that is supposed to go to the Zambian treasury instead goes to Jamerson Chagwa. First Quantum are already showing their gratitude to Jamerson. These PFools are not pro-poor; they are just pro – themselves and their own pockets.

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