Zambia's copper production is expected to set a new record in 2018

SMM1, March 2: Zambia's copper production reached 696526 tons in the first 10 months of 2018, up from the same period last year, according to data released on Monday. Africa's second-largest copper producer produced 696526 tons of copper between January and October 2018, according to data released by the Ministry of Finance. In the same period last year, the country produced 654743 tons of copper. According to the Ministry's preliminary economic assessment for 2018, the increase in copper production was mainly due to the fairly high price of copper, at an average of $6598 per ton, which provided impetus for copper production. The report further attributed the improvement in copper production to a stable electricity supply during the year. Since then, the ministry expects copper production in 2018 to exceed last year's record of 800000 tons. Zambia's copper production rose 8.6% in the first nine months of 2018, but the new tax law still worries the country's prospects.

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 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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