Zambia's state power company made the decision amid an ongoing dispute over the implementation of new electricity tariffs in the country.
First Quantum Minerals Mining News
Cobre Panama project is now 50% complete and on track to produce 320,000 tonnes of copper in 2019, making the company one of the world’s top six producers of the red metal.
So far, copper prices have failed to react significantly to news of supply disruptions, remaining more responsive to news from China, the world’s largest consumer.
The Vancouver-based miner aims to produce 280,000 to 300,000 tonnes of the red metal a year, but commercial levels won't be reached until state power utility Zesco finish connecting the mine to the power grid.
Power restrictions could hit output of most copper mines operating in the country.
The government intends to set its mining royalties at 9% for both open-pit and underground mines.
But the fund warned that only further tightening of fiscal and monetary polices would contain the country's large deficits.
The new rules only apply to future payments and not amounts already owed.
Newly elected President Edgar Lungu wants to keep mining royalties at 20%, as opposed to the 6% companies were paying a month ago.
The situation may soon change, as authorities have began talks with the country’s top miners, signalling the possibility of a compromise over the country’s new tax regime.
Copper tumbled Wednesday to fresh six-year lows, dipping below $5,500 a tonne. Stocks in miners of the industrial metal are getting hammered.
Despite the government announcement Tuesday that it will push ahead with plans to more than triple mining royalties.
Move will leave up to 12,000 jobless and it is likely to sour the already fractious relationship between the government and mining companies.
Underground mining royalties will go up from 6% to 8%; underground taxes now 20%.
Zambia’s mines minister says the company has not officially communicated the government its intentions as required under the country's law.
The company is cutting 169 jobs at the mine.
The standoff marks a major setback for the miner, which is in the process of upgrading its copper assets in Zambia hoping to increase output by at least 50% by 2017.
The business group argues the sector must be nurtured to generate the revenues needed for the country’s economic diversification.
Rule requiring exporters to produce import certificates from destination countries in order to claim tax refunds will be waived beginning Sept. 8.
Good news for the country's copper miners that have been seeking more than $600 million in unpaid tax refunds.
Acquirer is down.
Mining companies in Zambia use about 68% of the country’s electricity, while less than a quarter of the population has access to it.
Vancouver miner ups output at Central American project 20% to 320,000 tonnes copper a year as it overhauls construction plans for $6.4 billion mine acquired last year.