Zambia mulls over revising of mine agreement

Zambia's re-appointed finance minister Ng'andu Magande has said the government would soon review development agreements with the mines, most of which were sold to foreign investors at the time of privatization, local media reported on Wednesday.

Meanwhile, Magande said the government would also begin negotiations with the mines and other stakeholders over the review of mineral royalties.

The minister was cited by The Post as saying reviewing agreements with the mines was critical for the country to benefit from the prevailing high metal prices.

Zambia is one of the world's leading copper producers and copper mining is the country's main foreign exchange earner.

"You will recall that these agreements were signed when international metal prices were very low but they are now good," Magande was quoted as saying.

He added that in this vein the mineral royalty on copper, which is 0.6 percent compared with the world average of 2.5 percent, would also be revised.

"This, again, is too low and we shall soon start negotiations for its review in line with the world average," Magande said.

"The main point is that as the prices of copper and other metals boom, the country needs to benefit as well," the minister added.

Source: Xinhua