• Mini budget: Lost trust

    The elephant in the room is a bigger danger to SA than weak finances, says Jaco Leuvennink.

  • Time to tackle floods

    Government isn't doing enough so it's up to us to take responsibility, says Mandi Smallhorne.

  • Conquering prejudice

    Every workplace would benefit from a self-critical process relating to prejudices, says Ian Mann.

Loading...

Zambia's 2012 mining revenue surge

Jan 08 2013 19:25
Reuters
Lusaka - Zambia's mining revenue rose by a quarter in 2012 after Africa's top copper producer doubled royalties charged on mining firms, bringing in badly needed revenue for social spending and farm subsidies.

Zambia, like other African countries, wants to extract more revenue from their mining industries - a move miners have warned may cause them to scale back operations.

Foreign mining companies operating in Zambia include Canada's First Quantum Minerals, London-listed Vedanta Resources, Glencore of Switzerland and Barrick Gold of Canada.

Zambia collected 4.4bn Zambian kwachas ($830.19m) in mining taxes last year compared with 3.3bn Zambian kwachas in 2011, Deputy Finance Minister Miles Sampa told Reuters on Tuesday.

Of these, revenue from mineral royalties jumped 72% to 1.5bn kwacha in 2012, while revenue from the profit-based income tax was largely steady at 2.6bn kwachas.

"The problem is that only about two mines are currently declaring profit and paying the due tax," Sampa said.

"We should be able to increase mining revenue further if we address the problem of tax avoidance."

Zambia last year brought in guidelines for mineral exports to allow state agencies to verify weight and content to enhance transparency.
 
Government estimates showed the country was losing as much as $1bn each year through tax avoidance and the government would this year closely monitor mining companies, Sampa said.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

zambia  |  mines

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about...

Calling all social entrepreneurs - apply for The Venture now!

Are you running an innovative social business that's helping to create a better future? Then pitch for a share of The Venture’s $1m fund and receive world-class mentorship to help accelerate your business growth.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Pick n Pay launches new website for easier online shopping

Previous results · Suggest a vote

Loading...