SMM7, May 5: Zambia is planning to pass a law requiring mining companies to give local suppliers a fair chance when purchasing, Zambian Mining Minister Richard Musukwa said Thursday.
Musukwa says Zambian mining imports are worth $4 billion a year, but only 10 per cent of that goes to local suppliers.
This is another move by the Zambian government to intervene in the country's mining industry.
At the beginning of this year, Zambia has taken a number of initiatives to promote the development of its mining industry. Including the introduction of a new mining tax, requiring local imports of copper concentrate to impose a tariff of 5 per cent, aimed at ensuring the country's interests in natural resources.
The Zambian government is in dispute with Vedanta (Vedanta), and Zambian President Edgar Lungu is trying to disband Konkola copper Mines (KCM), a subsidiary of copper producer Vedanta.
Vedanta, who also said he would take urgent measures to protect his assets in Zambia, sought arbitration with the South African High Court on Wednesday, which allowed Vedanta to apply for an emergency temporary injunction.
Zambian President Edgar Lungu had previously said that despite opposition from some mining companies, he insisted on tax reforms to replace the previous VAT with a non-refundable sales tax, or that it would be introduced in July.
Zambia, the second largest copper producer in Africa, produced 861960 tons of copper last year.
However, Zambia's copper production fell 11.3 per cent from January to March to 195244 tons from a month earlier, according to (Bank of Zambia), the Zambian central bank.
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