LUSAKA Zambia (Xinhua) --
More than half of Zambia’s
mining firms will become loss-making at current copper prices if
the Zambian government goes ahead to implement its proposed new
tax regime, a report released on Thursday has revealed.
The report titled
“Taxing the Mining Industry” released by the Chamber of Mines of
Zambia, an association representing mining firms in Zambia, said
the position would be even worse for gemstone producer who have
an additional export duty to contend with.
president of the association said during the release of the
report that Zambia will tax itself out of the market for new
investment and expanded operations if the new tax regime goes
He said for a
country that has acknowledged the need to diversify its mineral
sector as well as its economy, the move was a completely
“The research shows
that if the 2019 budget proposals are enacted, Zambia will have
by far the highest tax burden of the 12 mining countries
sampled,” he told reporters during the release of the report.
Zambia’s mine are
grappling with the reality of massively increased costs next
year and the only operational response available will be to
scale back certain operations, reduce capital expenditure, and
mine only the highest grades available, he added.
There is a standoff
between the government and the mining firms on the backdrop of
new tax regime which comes into effect next January.
Among the new
measures in the new tax regime include increasing mineral
royalty rates by 1.5 percentage points at all levels of the
sliding scale, and introducing a fourth tier rate at 10 percent
on the sliding mineral royalty regime, which would apply when
copper price rise beyond 7,500 U.S. dollars per tonne.
While the government
has insisted on effecting the new tax regime, mining firms have
warned of job cuts and reduced capital expenditure.
Five killed, three
seriously injured in road accident in southern Zambia
LUSAKA Zambia (Xinhua) --
At least five people were killed and three others
sustained serious injuries in a road accident on a main highway
in southern Zambia, the police said on Wednesday.
Mwaata-Katongo, Zambia Police Spokesperson confirmed the
accident which occurred along the Great North Road near Mazabuka
town and involved five motor vehicles.
She said the
accident occurred in the early hours of Wednesday after a driver
of a truck lost control due to excessive speed and hit into
another oncoming truck which hit into three other vehicles.
She said this caused
the driver of one of the vehicles to lose control and overturned
in the process.