SMM6 20: Zambian President Edgar Lungu said he expected to complete negotiations with buyers of Vedanta subsidiary Konkola (KCM) within this month, but he did not disclose the names of the companies.
Earlier, the Zambian president said that KCM would be liquidated because of tax issues, which was strongly opposed by KCM, and the company said it was applying for international arbitration.
A court hearing on the appointment of an interim liquidator for KCM and the management of the Konkola copper mine owned by KCM will be held today.
KCM is Zambia's largest copper miner, creating about 13000 jobs. Annual copper production reached 90,000 tons in fiscal year 2018-19.
As a result of the introduction of a new mining tax in Zambia in January this year, requiring local imports of copper concentrate to impose a tariff of 5%, directly resulting in a sharp increase in 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. Large mining companies are also involved, including Glencore (Glencore Plc) and the first quantum (First Quantum Minerals Ltd.) in addition to KCM
The Zambian Mining Association (Chamber of Mines) has announced that Zambia's copper production this year is expected to be about 100000 tons less than the same period last year, compared with 861946 tons last year. "correlation Analysis-[Copper impact] the President of Zambia is determined to close the Vedanta subsidiary and carry out tax reform to the end
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