Zambia's mining industry says new tax rules will scare away investors - 500 Beiträge pro Seite

[fmhbolero]

13:02 (15/07) - Source: RTRS

By Chris Mfula LUSAKA, July 15 (Reuters)

Zambia's mining industry said on Wednesday that an increase in corporate tax to 35 percent and other new tax rules will scare away investors and discourage processing to add value, and called for them to be scrapped.

Last month Zambia, Africa's No.2 copper producer, approved a plan to increase the corporate income tax rate on mineral processing to 35 percent from 30 percent, and it became effective this month, bringing it in line with the rate charged to non-mining companies.

Foreign mining companies in Zambia include Glencore GLEN.L , Barrick Gold Corp ABX.TO , Vedanta Resources VED.L and First Quantum Minerals FM.TO .

The government also cut mineral royalty rates to 6 percent for underground mining, from 8 percent, and to 9 percent for open cast mining, from 20 percent.
However, Zambia's Chamber of Mines, an industry body representing mining companies, said in a presentation to parliament that the new tax rules would hurt investor confidence.

"It's therefore proposed that corporate tax on income should be maintained at 30 percent," it said.
The chamber also said the provision for different royalties based on mining methods did not take into account the peculiar challenges that both open cast and underground operations faced.
"It is recommended that the mineral royalty should be the same across the entire industry at 6 percent," it said.

The chamber also said proposed amendments to the Mines and Minerals Development Act gave the government too much power, with wide paremeters to introduce new regulations for mining firms.
"The above provisions clearly indicate that the legislative framework within the mining sector will not be predictable and can easily be amended," the chamber said.
Mining accounts for 12 percent of gross domestic product (GDP) and 10 percent of formal employment in Zambia.

(Editing by Susan Fenton) (([e-mail])

[Alfgolf]

warum wird nicht über First diskuttiert ?? ich finde sie sehr interessant und wenn Kupfer wieder spätestens Ende des Jahres interessant wird, sind sie ganz vorne dabei !!!

Mit dem Cobre Panama Projekt mit Cashcosts von zur Zeit noch ca. 0,72$ und all in von 1,4$ sind sie zukunftsmäßig die erste Wahl....

Das MM ist professionell und hat bisher alles geliefert , was sie versprochen haben !!!

Gruß