Webber Wentzel's Mining Sector Round Up 2024

• Because mining is a priority sectors, investors that come into the sector will enjoy some of the following incentives: • Guaranteed input tax claim for 10 years on pre-production expenditure for exploration; • Dividends paid by a mining company holding a mining license and carrying out mining operations taxed at 0 percent; • Zero rating of Value Added Tax (VAT) for selected capital equipment and machinery to a holder of a large scale mining license. • Additionally, there are no exchange controls. Subject to paying all relevant taxes, investors can repatriate their funds.

• Zambia’s Copper mines are concentrated in the Copperbelt Province, though the past decade has witnessed the establishment of mines in other parts of the country such as the North-Western Province. • Big players in the sector: Rio Tinto, First Quantum Minerals, Vedanta and International Resources Holding (IRH) who recently acquired 51% in Mopani Copper Mines for $1.1 billion. • The existing governing law for the sector is the Mines and Minerals Development Act No. 11 of 2015.

Mining in Zambia - continued

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