Zambia to Raise Mine Royalties in Bid to Trim Budget Shortfall

(Bloomberg) -- Zambia, Africa’s second-biggest copper producer, will increase mine royalties next year as it seeks to reduce its bulging budget deficit, the finance minister said.

Rates, which range from 4 percent to 6 percent depending on the copper price, will rise by 1.5 percentage points across the board, Margaret Mwanakatwe told lawmakers in the capital Lusaka, in her maiden budget speech on Friday. The government also introduced a 10 percent charge if prices for the metal used in wiring and plumbing climb above $7,500 per ton, she said.

Companies including Glencore Plc, First Quantum Minerals Ltd. and Barrick Gold Corp. operate mines in the southern African nation.

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