Zambia is holding discussions with mining companies to cut mineral royalties for underground mine operations to below 9%.
Zambia Mines Minister Christopher Yaluma said that the latest development will come into force from July.
Go deeper with GlobalData
State broadcaster ZNBC quoted Yaluma saying that underground operations would become cost-effective with reduction in royalties.
In April, Zambia Government set the royalty tax rate for both open-pit and underground mining at 9%.
Earlier plans were to charge as much as 20%.
Zambia was forced to revise the plan as its previous decision to increase royalties for open-pit mines from 6% to 20% and for underground mines from 6% to 8% in January was opposed by unions and mining companies.
Glencore, Barrick Gold, Vedanta Resources and Canada-based First Quantum Minerals are some of the major foreign mining companies operating in the country.
In April, Zambia dropped its plan to increase mining royalties in a bid to resolve a six-month stand-off with mining companies over the new tax system.
Presidential spokesman Amos Chanda then told Reuters that Zambia’s newly elected President Edgar Lungu directed a panel of ministers to finalise details on the proposed changes prior to submitting their presentation for parliamentary approval.
