In the past, political parties in Zambia argued that mining companies were not contributing their share towards the country’s economy. Consequently, Zambia has a long history of disputed changes to its mining tax regime, which has strained the relationship between government and the mining sector. However, the country introduced a new sliding-scale mineral royalty tax (MRT) system on June 1 that imposes levies on operators according to the copper price at the time. When the copper price is below $4 500/t, mining companies will pay 4% in government royalties. If the copper price is between $4 500/t and $6 000/t, mines will pay a royalty tax of 5% and, if the price is higher than $6 000/t, mines will pay a royalty rate of 6%.
