* Mineral royalties to be determined by price
* Royalty tax rate to range between 3-9 percent
* Chamber of Mines welcomes planned sliding scale
(Adds detail, comment from Chamber of Mines)
By Chris Mfula
LUSAKA, Dec 22 (Reuters) - Zambia, Africa's second largest
copper producer, will introduce a variable tax on mineral
royalties that will be adjusted according to metal prices, a
government spokesman said on Tuesday.
Zambian royalty taxes will range between 3 percent and 9
percent for open-pit and underground mines and will be
calculated using the global price of metals, Amos Chanda said,
adding that it may come in as soon as the first quarter of 2016.
Zambia had already cut mineral royalties in June for
underground mines to 6 percent from 9 percent and those of open
cast mines to 9 percent from 20 percent following an outcry by
mining firms.
The Zambia Chamber of Mines, which had suggested the idea of
a sliding tax, welcomed the government's decision.
"We are anxiously looking to the government implementing it,
especially in this low price environment," Chamber of Mines
President Nathan Chishimba told Reuters.
An electricity shortage and weaker copper prices due to
slower growth by top consumer China have put pressure on
Zambia's mining industry, threatening output, jobs and economic
growth in the southern African nation, and put its currency on
the back foot against the dollar.
Chanda said the government wanted stability in the mining
sector and expected the new mineral royalty to run for a period
of at least 3-5 years.
"Parliament will have to approve this royalty and it is
possible that we can have it introduced in the next quarter," he
said.
Mining companies operating in Zambia include Canada's First
Quantum Minerals FM.TO , Swiss commodities giant Glencore
GLEN.L , London-listed Vedanta Resources VED.L and Barrick
Gold Corp. ABX.TO .