Quantum one cancels massive layoffs in Zambia

(First Quantum), Canada's first quantum mining company, has scrapped plans to cut 2500 jobs in Zambia as a result of raising mining taxes and has promised to extend negotiations with the Zambian government on the issue.

Zambia, Africa's second-largest copper producer, raised royalties by 1.5 percentage points this year by 4 to 6 per cent and imposed a new tax of 10 per cent when copper prices exceed $7500 a tonne. The country also plans to replace VAT with a sales tax by April to help reduce rising public debt.

In a statement released by local news website Mwebantu, first Quantum said the company will not continue to plan to lay off any Zambians involved in its production activities. After a detailed analysis and consideration of the various factors brought about by the new tax, it was decided to reduce only the Zambian workforce related to the capital account.

In 2017, the first quantum copper production accounted for more than half of the country's copper production and was the largest individual taxpayer. Zambia's mining revenue accounts for 84% of the first quantum's total revenue.

In addition to the first quantum, companies operating in South Africa include Glencore (Glencore), Vedanta Resources (Vedanta Resources) and Barrick Gold (Barrick Gold). The company said earlier this week that it was considering selling its copper mine in Luvana, given the "tough situation" it faced.

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