BUSINESS OF MINING

TALKS ON OVER TAX CHANGES

THE WORLD’s largest gold mining company Barrick Gold said yesterday that its Lumwana copper mine was continuing to engage with the Zambian government and community stakeholders over proposed tax changes. Last year Zambia, Africa’s second largest copper producer, announced plans to introduce new mining duties, replace value-added tax with a sales tax and increase royalties from this month, to help reduce its rising public debt. Barrick chief operating officer for Africa and the Middle East Willem Jacobs said the company was mindful that the government was under pressure to increase revenue, but the planned tax changes “would put Lumwana in a challenging situation. The proposed changes to taxes and royalties would imperil the mine’s ability to sustain returns to all stakeholders, such as the significant contribution of more than $3.3 billion (R45.58bn) it has already made to the Zambian economy over the past 10 years,” Jacobs was quoted as saying. | African News Agency (ANA)