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LUSAKA (Reuters) - Zambia, Africa's top copper producer, plans to open talks with foreign mining companies over long-term agreements that the government cancelled in 2008, secretary to the treasury Likolo Ndalamei said on Thursday.

Foreign mining companies operating in Zambia have been demanding the restoration of development agreements, whose cancellation caused loss of incentives for the mines.

"In the spirit of dialogue and especially because of the need to attract investors in Zambia's quest for development, (the) government has appreciated the necessity for extensive talks," Ndalamei said in a statement.

The government would soon engage the companies that had raised concerns about the changes to the mining legislation and the resultant impact that the tax measures had on incentives, he said without stating a timetable for the talks.

"This new fiscal and regulatory engagement process with the mines is in line with the presidential guidance given during the official opening of parliament," Ndalamei said.

TAX INCREASES

Zambia in 2008 increased company income tax from 25 percent to 30 percent, raised mineral royalty from 0.6 percent to 3 percent, introduced a 25 percent windfall tax and separated hedging income from mining income for tax purposes.

But following protests from mining companies, the government last year removed the windfall tax.