Author: Paul Ploumis20 Jan 2015 Last updated at 07:38:27 GMT
LUSAKA (Scrap Monster): The three way talks involve the government officials, the executives of the company, and also union representatives. The meeting is held in the capital city of Zambia, Lusak, in order to determine the best way in which the mining industry can be proceeded without hurting the industry, stated the Deputy Labor Minister of the country, Rayford Mbulu.
If the outcomes of the meeting comes out as successful as expected, then it can cut off the layoffs of about 10,000 Zambian workers, as well as the closure of the Lumwana Mine, owned by the Barrick Gold Corp, located in the North West province of the country. If the government is ready to compromise, it would ease the pressure on the copper mining industry of Zambia, which also affected by the decline in the price of copper. Last week, the price of copper declined to a five year low.
Mbulu stated that, the talks are still going on, and the government is listening to the copper miners. And the company officials stated that, nothing is beyond revision at this particular stage. According to the new royalty regime, which came into effect, from the beginning of the month January, the open pit mines in the country are required to pay 20 percent of their revenue, which is a hike from the previous revenue, which was 6 percent. The 6 percent revenue from the underground mines increased to 8 percent. The new law is applicable to the production of all base metals, from which copper contributes about 90 percent of the country’s mineral production. The government had scrapped income tax for the miners at the same time.
After being encouraged by the talks, Barrick reported that, the company might not close down the Lumwana copper mine in the country, if the government issues the new tax system. The company also reported that, the talks are still continuing and it hopes that solutions might be found, which would help the company to continue the mining procedure.