SMM12 21-Zambia's largest industry lobby group says more than half of Zambia's copper mines, Africa's second-largest metal producer, are likely to be unprofitable next year because the country has increased taxes on operators.
Zambian lawmakers this month passed legislation to increase mining royalties on copper and cobalt, both of which are key components of electric vehicles as southern African countries try to rein in foreign borrowing and reduce budget deficits.
Including Glencore Plc and First Quantum Minerals Ltd.. Mining operators, including, have warned the Zambian government through industry lobbies, reducing more than 21000 jobs and $500m in capital spending cuts.
Sokwani Chilembo, chief executive of mining companies, said by telephone that copper production would be flat next year and would fall from 2020 because of tax increases. He said the industry group expects to produce 820000 tons this year.
Copper accounts for more than 70 per cent of Zambia's foreign exchange earnings.
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