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Last Updated: Jun 30, 2009 - 8:30:17 AM |
LUSAKA - Zambia President Rupiah Banda said on Wednesday he was willing
to review copper mining taxes and he criticised the country's
opposition for blocking a Chinese firm from running a big mine.
The opposition has said it wants to curb China's widening influence in
the country's mining sector, saying Chinese firms have a poor safety
record and pay low wages to workers.
Banda's government in May picked China's NFC Africa to take a majority
stake in the closed Luanshya Copper Mines (LCM), which shut down in
December after making losses, leading to job cuts.
The Chinese firm was due to officially take over the mine on Wednesday.
"I'm shocked that the so-called opposition leaders have been pushing
for the blocking of this transaction through a court process," Banda
said.
"If this matter goes to court, and we all know how long court processes
take, who is going to suffer? It is obvious that it is the workers and
their families."
Banda said lower prices of copper, together with higher food and oil
prices had placed enormous pressure on the economy, leading Zambia to
cut its 2009 economic growth forecast to 4,0 percent from a previous
forecast of 5,8 percent.
Banda said he was willing to review copper mining taxes set last year
for Africa's top producer of the metal, after foreign firms raised
objections to the new fiscal regime.
The controversial mining taxes were introduced because of a need to
increase spending on infrastructure in the southern African country.
Zambia earlier this year scrapped the 25 percent windfall tax
introduced last year under pressure from foreign owners of its copper
mines.
The government last year also introduced a new variable profit tax,
which effectively raised mining tax to 47 percent from 31 percent,
despite industry objections.
"It is the intention of my government to re-engage mining companies
through dialogue in resolving any of the outstanding (tax) issues,
which may have a risen," Banda told a news conference.
Foreign firms operating in Zambia include Canada's First Quantum
Minerals, Australia's Equinox Minerals Ltd. Swiss firm Glencore
International AG and London-listed Vedanta Resources Plc, the country's
largest copper producer.
Source:Ocnus.net 2009
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