Q FM Africa's Modern Radio
President Edgar Lungu has directed the Ministers of Finance and Mines and Minerals Development to effect changes to the 2015 mineral royalty tax by 8th 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.
President Lungu also noted that some mines are high-cost while others are low-cost operations.
He says the mining industry has affected by copper prices on the international market, and that it is clear that this unfavorable economic trend globally has been mainly on account of weak global demand for copper.
President Lungu has emphasized that government will always be amenable to progressive ideas that will assist in addressing challenges in the mining sector.
Among the options the president has asked the two ministers to consider as the effect changes to the mining tax regime are the 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, deter implementation of the 2015 fiscal regime and temporary reinstate the 2014 fiscal regime as a more amicable regime is negotiated.
President Lungu has 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.
This is contained in a statement issued to QFM News by the President’s special assistant for press and public relations Amos Chanda.