We are already getting some indications of what the death of President Sata may mean for some economic policies. There are reports that Government may be backing away from plans to impose a 20 percent royalty rate on open pit mining in the country, according to Barrick Gold executives.
Finance Minister Alexander Chikwanda announced earlier this month that that from January royalties on open pit mines will rise to 20 percent and on underground mines to 8 percent from 6 percent currently.
Barrick Gold (owners of Lumwana Copper Mine) have been threatening government over the issue, suggesting that it would mean closure of Lumwana. They told Reuters on Thursday that "our sense is there would be movement away from that number....that's certainly the direction discussions were going"
The Chamber of Mines has been separately calling on government to reverse the mineral royalty tax regime, arguing that "the tax system undermines the mining industry's goal of accelerating growth"
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