Mines and Minerals (Amendment) Act, 2003

6. six Cap323 Repeal and replacement of section 66 Royalties on production of minerals "tax (2) In subsection ('.l) clearance certificate" means a tax clearance certificate issued under section eighty-one B of the Income Tax Act. The principal Act is amended by the repeal of section sixty­ and the substitution therefor of the following:

66. (1) The holder of a mining licence shall, in accordance with the licence, this Act .and the terms of any relevant development agreement, pay to the Republic a royalty on gross value of minerals produced under the licence at the rate of two per centum except that in the case of the former Zambia Consolidated Copper Mines Limited or any other company involved in copper and cobalt production the rate shall be zero point six per centum. (2) The holderof a gemstone licence or a small-scale mining licence or an artisan's mining right to mine gemstones, base metals or precious metals shall, in accordance with the licence or mining ,right, this Act and the terms of any relevant development agreement, pay to the Republic a royalty on gross value of minerals or metals produced under the licence or mining right at the rate of five per centum. In this section- (3) " gross value " means the realised price for a sale free­ on-board, at the point of export from Zambia or point of deli very within Zambia: Provided that if the Minister considers 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 ,.. anus length, between a willing seiler and a willing buyer, a notice b�e given to lhat effect to-.the· �kensee; and the a.TJ1ount Of t�e may. � Cap. 323. . gross value shall be determined in accordance �vith mechanism - contained in·section ninf!:iy-Se,y¢�A, ro ;zinety-seven D of the Iacome , : 'Tax.Act., . . . '. . epe_ao, . I f R 0";.s,.,,. '"' sec? .• _ : :,.'_:eight.,'. . ,7 ... Jhe principalAct is amended by the repeal of��ticin · ·, · ·· · ..... . . · ninety- ... ····-· . .· .. ,·. ,.,,. :, ., . . ,.