The Mines and Minerals Development (Amendment)

An Act to amend the Mines and Minerals Development
Act, 2015. [7th June, 2016
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Mines and Minerals
Development (Amendment) Act, 2016, and shall be read as one
with the Mines and Minerals Development Act, 2015, in this Act
referred to as the principal Act. (2) This Act shall come into operation on 1st June, 2016. 2. (1) The principal Act is amended by the deletion of section
eighty-nine and the substitution therefor of the following:
89. (1) A holder of a mining licence shall pay mineral royalty
at the rate of —
(a) five percent of the norm value of the base metals
produced or recoverable under the licence,
except when the base metal is copper;
(b) five percent of the gross value of the energy and
industrial minerals produced or recoverable
under the licence;
(c) six percent of the gross value of the gemstones
produced or recoverable under the licence; and
(d) six percent of the norm value of precious metals
produced or recoverable under the licence.

mstones
produced or recoverable under the licence; and
(d) six percent of the norm value of precious metals
produced or recoverable under the licence.

(2) Where the base metal produced or recoverable under the
licence is copper, the mineral royalty rate payable is—
Mines and Minerals Development
(Amendment)
Short title
and. commence-
ment
Enactment
Amendment
of section
89
Royalties on
production of
minerals
Act No. 11
of 2015
[No. 14 of 2016 419
Single copies of this Act may be obtained from the Government Printer
P.O. Box 30136, 10101 Lusaka. Price K8.00
GOVERNMENT OF ZAMBIA
ACT
No. 14 of 2016
Date of Assent: 6th June, 2016

obtained from the Government Printer
P.O. Box 30136, 10101 Lusaka. Price K8.00
GOVERNMENT OF ZAMBIA
ACT
No. 14 of 2016
Date of Assent: 6th June, 2016

(a) four percent of the norm value when the norm price of
copper is less than four thousand five hundred United
States dollars per tonne;
(b) five percent of the norm value, when the norm price of
copper is four thousand five hundred United States dollars
per tonne or greater but less than six thousand United
States dollars per tonne; and
(c) six percent of the norm value, when the norm price of
copper is six thousand United States dollars per tonne
or greater. (3) A person who is not a holder of a mining licence and who
is in possession of minerals extracted in the Republic for which
mineral royalty has not been paid is liable to pay mineral royalty at
the rates set out in subsections (1) and (2).

xtracted in the Republic for which
mineral royalty has not been paid is liable to pay mineral royalty at
the rates set out in subsections (1) and (2).

(4) Where the Commissioner-General determines that the
realised price does not correspond to the price that would have
been paid for the minerals if they had been sold on similar terms in
a transaction at arm’s length, between a willing seller and a willing
buyer, the Commissioner-General shall issue a notice to that effect
to the licencee and the amount of the gross value shall be determined
in accordance with the mechanism contained in sections ninety-
seven A to ninety-seven D of the Income Tax Act.

of the gross value shall be determined
in accordance with the mechanism contained in sections ninety-
seven A to ninety-seven D of the Income Tax Act.

(5) In this section—
“ gross value ” means the realised price for a sale, free on
board, at the point of export from Zambia or point of delivery
within Zambia;
“ norm value ” means—
(a) the monthly average London Metal Exchange
cash price per tonne multiplied by the quantity
of the metal or recoverable metal sold;
(b) the monthly average Metal Bulletin cash price
per tonne multiplied by the quantity of the metal
sold or recoverable metal sold to the extent that
the metal price is not quoted on the London
Metal Exchange; or
(c) the monthly average cash price per tonne, at any
other exchange market approved by the
Commissioner-General, multiplied by the
quantity of the metal sold or recoverable metal
sold to the extent that the metal price is not
quoted on the London Metal Exchange or in
the Metal Bulletin; and
Cap. 323
Mines and Minerals Development
(Amendment)420 No. 14 of 2016]

price is not
quoted on the London Metal Exchange or in
the Metal Bulletin; and
Cap. 323
Mines and Minerals Development
(Amendment)420 No. 14 of 2016]

“ norm price ” means the monthly average—
(a) London Metal Exchange cash price per tonne of
the metal or recoverable metal sold;
(b) Metal Bulletin cash price per tonne of metal sold
or recoverable metal sold to the extent that the
metal price is not quoted on the London Metal
Exchange; or
(c) cash price per tonne, at any other exchange market
approved by the Commissioner-General of the
metal sold or recoverable metal sold to the extent
that the metal price is not quoted on the London
Metal Exchange or Metal Bulletin.
Mines and Minerals Development
(Amendment) [No. 14 of 2016 421

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