Ghanaian President Nana Akufo-Addo issued a firm warning: stop expecting supercharged profits from Africa’s mineral riches.
Zambia Mining News
Mopani is one the biggest mining companies in Zambia -- Africa's No. 2 copper producer.
Company has signed a new $2.7-billion term loan and revolving credit facility, replacing the existing $1.5 billion one.
“There is no renegotiation taking place because a law has been passed in parliament to change the tax regime."
The offers relate to the ministry's 17% holding in ZCCM-IH and a sale would be subject to cabinet approval.
The deal would also include ZCCM-IH dropping a $1.4 billion legal claim against First Quantum over a loan the company received from Kansanshi.
Executives, investors and government officials met in Cape Town at the African Mining Indaba, the continent’s biggest gathering of one of its most essential industries.
Zambia, Africa's No.2 copper producer, introduced a new 10 percent tax when the price of copper exceeds $7,500 per tonne.
“Our actions are designed to sustain and create jobs, grow the economy, and contribute more to the treasury.”
The precious gemstones miner has agreed, on a no-admission-of-liability basis, to settle claims brought against it by a group of 273 Mozambicans related to its ruby mine in northern Mozambique.
“We don’t believe that threatening one’s partner is a constructive way to go about solving problems.”
The Canadian miner planned to lay off 2,500 workers due to higher mining taxes in the country, but has now decided to continue dialogue with the government over the issue.
While company denied media reports that it had sold Lumwana, it said that given the challenging conditions the mine was facing in Zambia, all options would have to be considered.
The two-day hearing will be watched by other multinational companies with a base in London and facing legal challenges about their operations abroad.
Konkola Copper Mines (KCM), majority owned by Vedanta, suspended operations at its Nchanga mine following the introduction of an import duty on copper concentrates, the company said.
Mining companies have been demanding Zambia pay the $550-$600 million due to them in Value Added Tax (VAT) refunds.
The Chamber of Mines said that as a result of the changes, more than 58% of Zambia's copper producers would be loss-making at current prices.
The Canadian miner said the job cuts will be implemented in phases during the first quarter of 2019, adding they’ll be equally split between its Kansanshi and Sentinel mines.
The effective tax rate will range from 86% to 105%, with about 27,900 jobs at risk - Zambia Chamber of Mines.
There were no findings of wrongdoing or late payment, the Zambia Revenue Authority (ZRA) said.
Mining companies in Zambia have warned that an increase in royalties set for Jan. 1 will lead to more than 21,000 job cuts.
Africa's No.2 copper producer plans to introduce new mining duties, replace Value Added Tax with sales tax and increase royalties to help bring down mounting debt.
Mining companies operating in Zambia include NFC Africa, majority owned by China Non-ferrous Metals Company Limited (CNMC), Canada’s First Quantum Minerals, Glencore, Barrick Gold and Vedanta Resources.
Power restoration has started but it will be gradual.
He is said to have already begun training three to four people to succeed him in the job.