With the 60-day ultimatum expired, non-compliant firms will face government pressure.

On May 27, Zambia's Vice-President Guy Scott reaffirmed his government's position not to re-introduce a windfall tax, though the government is likely to step up its efforts to tackle the high level of tax evasion by mining companies.

The government is concerned that even though the mining industry accounts for about 80% of the country's export earnings, it contributes less than 2% to government revenue. In March 2012, the government gave a 60-day ultimatum to 400 mining firms to comply with new regulations calling for the submission of their financial data and payment of fees and taxes.

The government's 60-day ultimatum to 400 mining firms expired on May 18. Non-compliant firms are likely to face hefty fines or licence cancellation. Particularly at risk are indigenous and Chinese firms associated with officials in the previous government. Other firms, including BHP Billiton and First Quantum Minerals, are likely to face demands for tax arrears.

Read the original of this report on the ThinkAfricaPress site.