Mining companies operating in Zambia will still meet their operational costs even after the government imposes higher taxes.
Zambia Mining News
Eurasian Resources Group (ERG) plans to ramp up cobalt output at its Democratic Republic of Congo (DRC) facility as it expects the electric car industry to boost demand for the metal.
The decision to restart output at the mine comes despite plans by the government to hike mining taxes to bring down mounting public debt.
Africa's second-largest copper producer said late last month that it would introduce new mining duties and increase royalties to help bring down mounting debt.
The country's proposed mining tax increases would hobble Africa's second biggest copper industry, miners say.
Zambia has asked mining companies to pay mineral royalties directly to the central bank in dollars as one of the measures to help stabilise its kwacha currency
Delivering a $7.1 billion budget in parliament, Margaret Mwanakatwe pledged to bring debt down and to trim the fiscal deficit to 6.5 percent of GDP in 2019.
The Finance Ministry is targeting a budget shortfall of 6.5 percent of gross domestic product next year, compared to 7.4 percent this year.
Zambia’s Revenue Authority served the firm two search warrants during an unannounced visit to its Kagem mine.
The IMF has warned the southern African nation is at high risk of debt distress, while investors have grown skeptical about the amount of external loans.
The new measure will affect global mining firms including First Quantum Minerals, Glencore, Barrick Gold Corp and Vedanta Resources which currently pay a flat rate of 9.30 cents/kWh.
Another 10 are injured after a dumping site for copper mining waste collapsed in the town of Kitwe in the country's Copperbelt province
Vedanta's Deshnee Naidoo told Reuters, adding that KCM is on track to produce 400,000 tonnes of copper a year in the next few years.
Despite its insatiable appetite for materials, India is yet to impose itself among the mining heavyweights like Australia, China or even the U.K.
The coloured gemstone sector has no system, globally at scale, that allows gemstones to be confidently traced from mine to market.
First Quantum said that Zambia's tax agency had demanded the taxes, saying they were on import duties, penalties and interest on consumables and spare parts.
The UK miner, which is the world's top coloured gems producer, is also adopting a new technology to further drive transparency in the sector.
The decision was made to reflect a challenging "shareholder experience" and operations at some mines.
A lack of returns to governments is drawing a backlash from Mali in the Sahara to Tanzania on the Indian Ocean.
The Toronto-based company, which operates the Lumwana mine, hasn’t received any notifications from the tax authority.
Zambia Revenue Authority claims the company owes $2.1 billion in penalties and $5.7 billion in interest.
Shares of First Quantum fell as much as 13 percent in Toronto and were down 12 percent when the stock was halted ahead of the statement.
The Zambia Revenue Authority may extend the period of the audit should it find a pattern of “consistent, systematic, premeditated” tax evasion.
Rising copper prices were also expected to boost revenue collection in Africa's No.2 producer of the metal.
Country's Chamber of Mines says rail system is not ready to handle that amount of cargo, adding that the potential impact on the mining industry has not been properly considered.