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Zambia Royalty Spat Halts $2 Billion of Copper Mine Projects (2)

Sept. 30, 2020, 5:58 PM

Copper miners in Zambia have halted $2 billion of planned investments because a royalty tax introduced last year makes the projects unviable, according to an industry lobby group.

A plan by First Quantum Minerals Ltd. to invest $1 billion extending the life of its Kansanshi operation won’t proceed until the royalty is deductible from other corporate taxes, said Sokwani Chilembo, chief executive officer of the Zambia Chamber of Mines. The same goes for EMR Capital-backed Lubambe Copper Mine’s project to invest a similar amount in a new mining operation, he said.

“We need this royalty payment regime removed for ...