Harare – Zambia has approved a new royalty regime for copper, which will see royalties levied at 4% for prices below $4 500 per tonne and at 6% for prices above $6 000/t in a bid to cushion miners against softer metal prices.
The country's Parliament passed the new royalty regime on Wednesday after Edgar Lungu's cabinet approved the new royalty fee structure in February. Lungu is now expected to sign the regime, which will be effective from April 1 2016.
Zambia is Africa's second-largest producer of copper, which accounts for the greatest share of its income from exports. First Quantum and Vedanta Resources are among the biggest copper producers in Zambia, although most mines in the country have started to close some operations.