Zambia President Edgar Lungu is looking to resolve the country’s mine royalty row and has appointed a team to end a stand-off with mining firms.
The latest decision is expected to prevent impending job cuts as well as mine closures.
Earlier in 2015, Zambia increased mineral royalties for open-pit operations to 20% from 6% threatening foreign investment in the country.
The increase in royalties are said to have caused friction between the government and mining firms that are currently facing a decline in global commodity prices.
Lungu directed the government to engage with mining firms and further said he would not allow a single mining job to be lost.
Lungu spokesman Amos Chanda told Reuters: "Mining companies are making recommendations, which will be evaluated by the committee and we hope that this matter can be put to rest by the end of this month."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Last month, Lungu initiated talks with mining companies to resolve tax and royalty issues.
Zambia’s Chamber of Mines said in December that the new royalty limit may result in closures of shaft and lead to loss of around 12,000 jobs.
Lusaka relaxed rules last month that have saved $600m in tax refunds that are being paid to Glencore and Vedanta Resources, the news agency said.