In a bid to put to an end a protracted impassé with Zambia’s mining firms, the country’s cabinet ministers have agreed to shelve a proposal for an increase in royalties demanded from mining firms.

Edgar Lungu, the newly-elected President of Zambia, called on his ministers to conclude certain parts of the proposed adjustments before they presented them for parliamentary endorsement in the week ahead, Amos Chanda, the presidential spokesman told the Wall Street Journal (WSJ) on Tuesday.

The latest move brings an end to a prolonged squabbling between mining firms and the Zambian government over the new tax system meant for mining firms.

It is also the most important respite to the mining firms that have been battling to address their ever-increasing capital outlays along with international metal prices. “The President hopes that the changes will promptly eliminate market anxieties in the mining sector and forestall any potential instability,” Chanda said.

In October last year, Zambia proclaimed a brand new mining tax system that required open-pit mines to fork-out about 20 percent royalty on their profits. The new tax system worries investors and has forced firms like Glencore and First Quantum Minerals to cancel expansion projects valued at $1.5 billion.