Poor African countries dependent on ores, gems and minerals for the bulk of export earnings risk losing new mining investments as mining companies threatens to shelve projects and cut jobs after the precipitous fall in global metal prices coupled with the introduction of new mining sector tax regime.

Last year, donors such as the International Monetary Fund and the World Bank encouraged countries to review contracts terms and the money realized ploughed into an infrastructure fund designed to help diversify the economy. Even though, the new taxes and royalties were no harsher than standard rates worldwide, outrage ensured, marking what may be the start of a retreat from resource nationalism among poor countries with plentiful commodities.

Absa capital forecasts the economies of 12 commodity-dependent African countries will expand by an average of 3.7 percent this year compared with 7.1 percent last year while current accounts will swing from an average surplus of 4.5 percent of gross domestic product to a deficit of 2.3 percent.

Zambia, Africa’s biggest copper producer, appears set to abandon plans to secure a greater slice of its mineral wealth as companies including subsidiary of India’s London-listed Vedanta and Equinox of Canada begun intense lobbying with African leaders jostling to attract their share of scarce investments.

Reverting to the old terms would reduce the government’s tax revenue by more than one-fifth.