Zambia's finance minister determines to raise the mining tax

Zambia's finance minister determines to raise the mining tax

On Thursday, Zambia's finance minister, Margaret Mwanakatwe, appeared to "respond" to the concerns of miners operating in the country.

Earlier, several mining companies with exploration operations in Zambia said the government's tax hike would hurt domestic exploration and production.

Zambia is currently Africa's second-largest copper producer.

Margaret Mwanakatwe said Thursday that the country's mining companies will remain largely stable in their operating costs after the country raised its mining tax.

Zambia plans to introduce a new mining tax, mainly to boost mining taxes to reduce mounting debt.

Her comments also suggested the government would not cancel or reverse its stance on raising the mining tax.

"The government must steadily raise its revenues from the mining industry."

The Zambian mining federation, which represents mining companies, has expressed opposition to the government's plan, while the Zambian mining prospectors' association has said the tax hike will hurt investment in new mines.