SMM1, April 4-Mining companies operating in Zambia, while opposed to the new mining tax, have failed to prove that high taxes will affect their profitability, a senior government official said Thursday.

"We want them to show how the new tax will affect production and profitability, but so far we haven't received anything," Chanda said. The two mining companies have written to us asking us to give them more time, but we have not heard any feedback from other mining companies.

Mining companies said last month that they could cut more than 21000 jobs as higher taxes cut capital spending over the next three years. The mining industry accounts for more than 70 per cent of Zambia's foreign exchange earnings. Companies operating in southern African countries include First Quantum,Glencore,Barrick Gold Corp and Vedanta Resources.

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