[miningmx.com] – BARRICK Gold said plans by Zambia to increase royalties payable by mining firms operating in its borders would threaten the viability of its Lumwana mine.
“Lumwana is a low-grade, open-pit operation with constrained margins,’ said Andy Lloyd, a spokesman for Barrick Gold, told Bloomberg News. “Applying a 20% royalty rate on Lumwana would seriously challenge the economic viability of the mine.’
Zambian finance minister, Alexander Chikwanda, said higher royalties would replace corporate income taxes for mines. In terms of the proposal, The current 6% royalty for all mines would rise to 8% for underground mines and 20% for open-pit operations, said Bloomberg News.
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