First Quantum says Zambia royalties could discourage investment

Thu Dec 18, 2014 11:00am EST
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TORONTO Dec 18 (Reuters) - Zambia's new mining royalty rate could be a "massive disincentive" for future investment if it does not come with some form of capital relief, First Quantum Minerals Ltd's president told Reuters on Thursday.

President Clive Newall said the miner does not yet know the specifics of the scheme to raise royalties on open pit operations to 20 percent from six percent. Some countries offer tax breaks to miners that are still earning back their capital costs.

(Reporting by Allison Martell)