Mining Tax Reforms Drive Fresh Investment

An economist has said the Government's mining tax reforms, introduced in 2022, have played a key role in rebuilding investor confidence and creating a stronger foundation for long-term growth in Zambia's mining industry.

I-NetCom Business Solutions Executive Director Kelvin Chisanga said the reforms have aligned Zambia's mining tax regime more closely with international best practice, improving the country's competitiveness as an investment destination.

He noted that measures such as allowing Mineral Royalty Tax to be treated as a deductible expense, introducing a variable royalty system linked to copper prices, and abolishing the Variable Profit Tax have made the sector more attractive to investors.

Mr Chisanga pointed to several major projects launched under the revised tax framework, including First Quantum Minerals' S3 Expansion at Kansanshi Mine, Barrick's Lumwana Super Pit, the Sino Kitumba Mine in Mumbwa, and the Ming'omba Copper Project in Chililabombwe, as evidence of renewed investor confidence.

He stressed that maintaining a stable and predictable policy environment will be critical to sustaining investment, following years of frequent changes to the country's mining tax regime.

Mr Chisanga also urged the Government to step up support for mineral exploration, broaden investment beyond copper, and promote local mineral processing to ensure Zambia captures greater value from the growing global demand for minerals needed in the clean energy transition.