Anglo American, a global mining company, participated in a global conference in Lusaka to discuss sustainable mining taxation solutions. The conference, organized by the Inter-governmental Forum (IGF) on Mining, brought together government officials, civil society representatives, and other stakeholders in the mining sector.
The main objective of the conference was to promote transparency and sustainable development in the mining industry by finding effective taxation solutions. The Minister of Finance and National Planning, Dr Situmbeko Musokotwane, inaugurated the three-day event and expressed confidence in its potential to facilitate constructive discussions and generate innovative ideas.
During the conference, Benjamin Jones, Lead Economist at Anglo American, commended the Zambian government’s focus on research and downstream processing capacity development in critical raw materials value chains. He highlighted the importance of understanding market dynamics and investment contexts when designing mining taxation policies.
Jones acknowledged the challenges faced by tax policy makers and administrators, including extreme price volatility in mining products that affects the predictability and measurement of taxable value. However, he emphasized that benchmark prices for rapidly growing material markets are emerging, which can improve the accuracy and ease of measuring value.
Anglo American reaffirmed its commitment to engaging in multi-stakeholder discussions to address ongoing challenges in mining taxation. The company aims to strike a balance between the needs of host countries and the incentives required for investment in the sector.
David Spencer, Head of International Tax at Anglo American, emphasized the importance of establishing frameworks that encourage mining investments to address climate change. He highlighted the need to find a balance that benefits both governments and investors, while considering the long-term nature of mining operations.
The dialogue between Anglo American and key stakeholders underscores their shared commitment to tackle mining taxation challenges and promote sustainable socio-economic development in Zambia. The conference served as a platform for constructive discussions and knowledge-sharing, marking a significant milestone in the ongoing efforts to create a transparent and prosperous mining sector in Zambia and other resource-rich countries.
Anglo American’s exploration activities in Zambia, including copper and cobalt, are part of their global greenfield discovery program. The company recently entered a joint venture agreement with Arc Minerals plc, with plans to explore Zambia’s North-Western province for copper and cobalt, subject to satisfying transaction conditions.