Zambia to ease tax rules on copper exports
The government of Zambia, Africa's second largest copper producer, said Tuesday it plans to waive a rule requiring miners to produce import certificates from destination countries.
The move could imply a $600 million refund in accumulated value-added tax to copper companies operating in Zambia that have failed to produce such import documents, WSJ.com reports.
The African nation, which last year lost its position as Africa's top copper miner to Congo for the first time since 1998, began enforcing the rule last year in order to curb tax avoidance.
The companies affected include the local units of First Quantum Minerals (TSX:FM), Barrick Gold (TSX, NYSE:ABX), Glencore (LON:GLEN), Vale (NYSE:VALE),and Vedanta Resources (LON:VED), all of which have copper projects in the country worth billions of dollars.