The Zambian government will review most agreements with investors in the mining sector following the copper price hike in international market and the appreciation of local currency kwacha against U.S. dollars, Finance Minister Ng' andu Magande was quoted by local media as saying Saturday.

Magande said it had become necessary to review most agreements because investors got huge tax exemptions and the government was concerned about the benefit the mines would give Zambians.

He said the government would soon negotiate an increase of mining royalties.

In order to encourage foreign investment in the country's mining sector, the Zambian government has offered a range of preferential policies.

For example, investors are required to pay as low as 2 percent royalties besides various tax and duty exemption and deduction.

The minister justified the government's action at the time of offering such incentives, saying the economy was on its knees then.

Source: Xinhua