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Economic analysis of Zambia’s ad valorem copper mineral royalty reforms using an analytic hierarchy process framework

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  • Webby Banda

    (University of Zambia)

Abstract

The Zambian Government has continuously been undertaking adjustment of the ad valorem copper mineral royalty. These reforms have been pursued with the main objective of instituting a robust mineral royalty instrument. In this paper, an economic analysis of Zambia’s ad valorem copper mineral royalty reforms was undertaken so as to determine that which is sturdiest in design. Four evaluation criteria were applied, namely, neutrality, government risk, investor risk and progressivity. Based on the results of these criteria, an analytic hierarchy process (AHP) framework was used to determine the most robust royalty reform. Mineral royalty with the highest AHP score denoted that which is sturdiest in design. Results show that the 2009 mineral royalty with an AHP score of 0.91 is the most robust as it offers the best trade-off among the employed criteria.

Suggested Citation

  • Webby Banda, 2019. "Economic analysis of Zambia’s ad valorem copper mineral royalty reforms using an analytic hierarchy process framework," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(1), pages 1-18, April.
    • Handle: RePEc:spr:minecn:v:32:y:2019:i:1:d:10.1007_s13563-018-0145-z
    DOI: 10.1007/s13563-018-0145-z
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    Cited by:

    1. Banda, Webby, 2021. "A real options based framework for assessing the international attractiveness of mining taxation regimes," Resources Policy, Elsevier, vol. 74(C).
    2. Alexander Cunningham, 2024. "Assessing the feasibility of deep-seabed mining of polymetallic nodules in the Area of seabed and ocean floor beyond the limits of national jurisdiction, as a method of alleviating supply-side issues ," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 37(2), pages 207-226, June.
    3. Banda, Webby & Chanda, Emmanuel K., 2021. "A proposed cooperatives strategy for artisanal and small-scale gold mining sector in Zambia," Resources Policy, Elsevier, vol. 70(C).

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