Zambia tackles deliberate undervaluation of mineral exports
2020-06-12 08:44:20 [Print]
Zambia on Wednesday said mines ministry officials will, starting next month, personally collect samples from mine sites around the country to prevent mining companies seeking to undervalue their production to pay less taxes.
The ministry said some mineral exporters deliberately submit low-grade samples to the state laboratory, causing an undervaluation of mineral exports and depriving the government of mineral royalty tax revenue.
The change, which takes effect on July 1, means the ministry will no longer accept samples submitted by exporters and is the latest push by Zambia's government to squeeze more revenue from the mining sector.
Mining accounts for more than 70% of Zambia's foreign exchange earnings. As Africa's second-largest copper producer, Zambia is also trying to diversify its revenue base by boosting its gold production, and making copper mining companies account for the gold they produce as a by-product.
The ministry said some mineral exporters deliberately submit low-grade samples to the state laboratory, causing an undervaluation of mineral exports and depriving the government of mineral royalty tax revenue.
The change, which takes effect on July 1, means the ministry will no longer accept samples submitted by exporters and is the latest push by Zambia's government to squeeze more revenue from the mining sector.
Mining accounts for more than 70% of Zambia's foreign exchange earnings. As Africa's second-largest copper producer, Zambia is also trying to diversify its revenue base by boosting its gold production, and making copper mining companies account for the gold they produce as a by-product.
Copper Conc. TC 25%min CIF China
Unit:USD/mt
China copper concentrate producers' suspension number statistics by province by month
Unit: pcs
