Mines and Minerals Development (Amendment) Act, 2014

2. Section two of the principal Act is amended in subsection (1) by the insertion, in the appropriate place, of the following new definitions: Amendment of section 2 “ open cast mining operations ” means any working or excavation open to the surface beneath the original surface of the ground for the purpose of mining, but excludes prospecting pits; and “ underground mining operations ” means any working beneath the surface of the ground, which is accessed by means of a ramp, adit, raise, shaft or winze, but does not include an open pit mine or quarry.

3. The principal Act is amended by the repeal of section one hundred and thirty-three and the substitution therefor of the following: Repeal and replacement of section 133

133. (1) A holder of a large-scale mining licence, large-scale gemstone licence, small-scale mining licence, small-scale gemstone licence or an artisan’s mining right shall pay a mineral royalty at the rate of twenty percent for open cast mining operations and eight percent for underground mining operations of— Royalties on production of minerals Single copies of this Act may be obtained from the Government Printer, P.O. Box 30136, 10101 Lusaka, Price K4.00 each. Mines and Minerals Development 80 No. 11 of 2014] (Amendment) (a) the norm value of the base metals or precious metals produced or recoverable under the licence or right; and (b) the gross value of the gemstones or energy minerals produced or recoverable under the licence or right. (2) The mineral royalty payable on industrial minerals shall be at six percent of the gross value of the minerals produced or recoverable under the licence. (3) Notwithstanding subsections (1) and (2), a person who is not a holder of a mining right or licence who extracts minerals or is in possession of minerals extracted in the Republic is liable to pay mineral royalty at the rate of— (a) six percent of the gross value for industrial minerals; and (b) twenty percent of the norm or gross value for other minerals. (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 may give a notice to that effect to the licensee 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. (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 metric 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 metal sold or recoverable metal sold to the extent that the metal price is not quoted on the London Metal Exchange; or Cap. 323 Mines and Minerals Development (Amendment) [No. 11 of 2014 81 (c) the monthly average of any other exchange market approved by the Commissioner- General cash price per metric tonne multiplied by the quantity of the metal or recoverable metal sold to the extent that the metal price is not quoted on the London Metal Exchange or Metal Bulletin; and “open cast mining operations” includes winnings from tailings dumps or similar dumps and leaching. 8 2