Barrick to suspend operations at Zambian mine on tax increase

Thu Dec 18, 2014 8:14am EST
 
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TORONTO Dec 18 (Reuters) - Barrick Gold Corp said on Thursday it is initiating procedures to suspend operations at its Lumwana copper mine in Zambia, following the passage of legislation that raises the royalty rate on the country's open pit mining operations from six percent to 20 percent.

The Toronto-based miner had earlier said it would consider such a move in the event the legislation passed. The new tax regime, expected to go into effect on Jan, 1, eliminates corporate income tax, but imposes a 20 percent gross royalty on revenue without any consideration of profitability. (Reporting by Euan Rocha Editing by W Simon)