SMM12 24 June news: the first quantum mining (First Quantum Minerals Ltd.) At least 2500 jobs are planned to be cut in Zambia on the grounds that the Zambian government has raised mining taxes. The layoffs will be implemented in phases in the first quarter of 2019 and will be shared equally between the company's Kansai (Kansanshi) and Sentinel mines.
(Zambia Chamber of mines), the Zambian mining chamber, said more than half of the country's copper mines could not be profitable next year. First Quantum Mining has announced plans to cut production. The Sentinel mine is a response to the increase in mineral mining rights to gold.
The company said Friday it would also cut an unknown number of contractors.
Last week, Zambia's largest industry lobby said more than half of Zambia's copper mines, Africa's second-largest metal producer, could be unprofitable next year because of increased taxes on operators. The effective tax rate will be between 86 and 105 per cent and about 27900 jobs will be at risk, the Zambian mining association said in a statement to reporters in the capital, Lusaka, on Thursday. 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 lobbyists that it will cut 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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