Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

EMR Captial’s Lubambe Copper Mine is in talks with the Zambian government for concessions on the mining royalty tax, which the former argues affects the feasibility of its $1bn development plan. 


With the revenue-based royalty tax on mining extracts, the copper sales tax rose from 5.5pc to 7.5pc in late June and led to double taxation of mining companies that also paid income tax. 


According to a recent media statement by Lubambe, the concessions are on par with those given to other mining companies in the global mining industry mining. The Zambian Chamber of Mines, however, on Sep 28 said the levy should be regarded as an expense that is deductible from earnings to avoid double taxation. The company is in active discussions with all levels of government in order to expedite exemptions, which include taxation, according to media reports. 

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