Project cargo and other freight volumes to and from Zambia will continue to perform below potential as the government and mining companies continue to spar. In January the government dealt the first blow when it announced that mineral royalties for open-pit operations would be increased from six to 20%. Toronto-based Barrick Gold responded by announcing that it would suspend operations at its Limwana Copper Mine. Zambia’s Chamber of Mines warned in December that the new royalties would result in shaft closures and 12 000 job losses. Mining companies have, however, scored some points, with the government relaxing its requirements for VAT refunds. Zambia Revenue Authority commissioner general Berlin Msiska said in a statement that the authority would now accept transit documents from exporters claiming VAT refunds.
