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[copper impact] Zambian President is determined to close Vedanta subsidiary and carry out tax reform to the end
Jun 5,2019 15:58CST
translation
Source:SMM
Zambian President Edgar Lungu said on Tuesday that he was determined to disband copper producer Konkola copper Mines (KCM). The move is bound to exacerbate Zambia's tax and employment disputes with foreign mining companies. The Zambian president had previously expressed his intention to liquidate the KCM, which was strongly opposed by the KCM. On Tuesday, a court hearing on the appointment of KCM's interim liquidator and the management of the Konkola copper mine owned by KCM was postponed for a week until June 11.
The content below was translated by Tencent automatically for reference.

SMM6, May 5: Zambian President Edgar Lungu said on Tuesday that he was determined to disband copper producer Konkola copper Mines (KCM), according to the News24 website.

KCM, a subsidiary of Vedanta (Vedanta), is Zambia's largest copper miner, creating about 13000 jobs. Annual copper production reached 90,000 tons in fiscal year 2018-19.

So the move is bound to intensify the tax and employment disputes between Zambia and foreign mining companies.

The Zambian president had previously expressed his intention to liquidate the KCM, which was strongly opposed by the KCM.

On Tuesday, a court hearing on the appointment of KCM's interim liquidator and the management of the Konkola copper mine owned by KCM was postponed for a week until June 11.

Maambo Hamaundu, an independent business analyst, said KCM was Zambia's largest employer, so the settlement could have a devastating impact.

Earlier, Anil Agarwal, chairman of Vedanta (Vedanta), said on May 29 that he was prepared to increase the company's copper production in Zambia to 400000 tons and that its subsidiary, Konkola copper Mines (KCM), would create another 10, 000 jobs. Provide more social benefits for employees.

But the premise of the plan is that the government must give it an "appropriate framework". "related news-chairman of Vedanta: the company will continue to invest in Zambia and may increase its annual production to 400000 tons

Zambia introduced a new mining tax in January, requiring local imports of copper concentrate to impose a tariff of 5 per cent, a move aimed at ensuring the country's interests in natural resources. However, it has also directly increased the costs of copper mining enterprises, more than half of the copper mines are losing money, and thousands of miners are in danger of losing their jobs.

Copper production in Zambia has also been directly affected.

Zambia's copper production fell 11.3 per cent month-on-month to 195244 tons in the January-March period this year, the Zambian central bank (Bank of Zambia) said earlier.

Zambia's copper production this year is expected to be about 100000 tons lower than in the same period last year, the Zambian Mining Association (Chamber of Mines) said. "related news-Mining tax reform raises corporate costs Zambia's copper production is likely to fall by 100000 tons this year

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