Zambia is
abandoning its demand for more taxes from mining companies.
Zambia's
cabinet approved changes to a controversial mining royalties law after the
finance and mines ministers proposed amendments.
A statement
from the Presidency said, "This follows extensive consultations with the
mining industry in the light of significant changes in the fundamental
assumptions upon which the law was based and the sudden fall in the price of
copper".
The statement
did not detail exactly what the changes were in the amendment.
Zambia's
cabinet will now propose details of the changes next Monday before their
presentation to parliament for approval.
Zambian
President Edgar Lungu last month directed the finance and mining ministers to
change royalties on mining firms by April 8, saying Africa's second biggest
copper producer could consider temporarily reverting to the tax regime of 2014.
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| Zambian President Edgar Lungu |
In January Zambia
raised royalties for open pit mines to 20 percent from 6 percent and those for
underground mines to 8 percent from 6 percent, which industry reacted to by
saying they would be forced to shut down several mining operations.
Mining firms
operating in Zambia include Glencore, Barrick Gold Corp, Vedanta Resources and
Canada’s First Quantum Minerals.