Zambia Chamber Sees 50% of Copper Mines Unprofitable in 2019
INTERNATIONAL – More than half of the copper mines in Zambia, Africa’s second-biggest producer of the metal, will probably be unprofitable next year with thousands of jobs on the line, as the nation raises taxes for operators, the country’s biggest industry lobby group said.
The effective tax rate will range from 86 percent to 105 percent, with about 27,900 jobs at risk, the Zambia Chamber of Mines said in a statement handed to reporters on Thursday, 20 December 2018, in the capital, Lusaka.
Zambian lawmakers passed legislation this month that increases royalties for copper and cobalt, both key components in electric vehicles. The country is trying to rein in foreign borrowing and cut a bulging budget deficit, while mining operators that include Glencore Plc and First Quantum Minerals Ltd. have, through the industry lobby group, warned of more than 21,000 job losses and $500 million in capital spending cuts as a result.
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Source: iol.co.za