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Mineral Taxation, Mineral Revenues and Mine Investment in Zambia, 1964–83

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  • Ciaran O'Faircheallaigh

Abstract

. The relationship between mineral taxation, mineral revenues, and investment in existing and new mine capacity in Zambia during 1964–83 is examined. By the mid‐1970s the Zambian copper industry was incapable of producing investible surpluses which could be appropriated by government partly because of unfavorable movements in real market prices for mining inputs and mineral output, partly because the mineral taxation systems applied since 1964 had deterred mine investment. This situation can only be remedied by changing the cost structure of Zambia's copper production, requiring major investments in modernization of existing, and development of new, mines. A tax system is suggested which offers a workable compromise between the need to obtain revenues for development and to ensure continued investment in mining.

Suggested Citation

  • Ciaran O'Faircheallaigh, 1986. "Mineral Taxation, Mineral Revenues and Mine Investment in Zambia, 1964–83," American Journal of Economics and Sociology, Wiley Blackwell, vol. 45(1), pages 53-67, January.
    • Handle: RePEc:bla:ajecsc:v:45:y:1986:i:1:p:53-67
    DOI: 10.1111/j.1536-7150.1986.tb01900.x
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    Cited by:

    1. O'Faircheallaigh, Ciaran, 1998. "Indigenous people and mineral taxation regimes," Resources Policy, Elsevier, vol. 24(4), pages 187-198, December.

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