Zambia had proposed to set its mining royalties at 9 percent for both open-pit and underground mines, a source in the presidency said yesterday, in an attempt to prevent looming job cuts and mine closures.
Zambia’s decision to increase royalties for open-pit mines to 20 percent from 6 percent and those for underground mines to 8 percent from 6 percent in January had rattled unions and miners, forcing the government to review the plan.
Some global mining firms expressed concern that the royalties could harm earnings, and some warned of shaft closures that could lead to the loss of about 12 000 jobs.
Reuters