Barrick to continue Lumwana operations pending royalty change

Fri Mar 27, 2015 11:36am EDT
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TORONTO, March 27 (Reuters) - Barrick Gold Corp will continue operations at its Lumwana copper mine in Zambia while awaiting changes to the country's mineral royalty tax, a spokesman told Reuters on Friday.

Barrick had said it would suspend operations after Zambia hiked mineral royalties to 20 percent from 6 percent in January.

"We are encouraged by the President's recent statement and will carry on operating at Lumwana while we await details on the government's proposed solution," Barrick spokesman Andy Lloyd said in an email.

Zambian President Edgar Lungu on Wednesday directed the finance and mining ministers to change royalties on mining firms by April 8, saying the copper-producer could consider temporarily reverting to the 2014 tax regime. (Reporting by Susan Taylor; Editing by James Dalgleish)