Konkola Copper Mines Halts Operations Due to Tax Concerns
Verdanta owned Konkola Copper Mines (KCM) has suspended operations at Nchanga mine following the introduction by the Zambian government of import duty on copper concentrates.
Following FQM’s statement last week this is the second large mining company to take action following new policy. In an attempt to bring down Zambia’s mounting debt the PF introduced new mining duties that increased royalties and planned to replace VAT with sales tax by April this year. Many large scale mines have decided that this policy will make their work untenable.
“The introduction of 5 percent import duty on concentrates has made the smelting of imported concentrates commercially unviable,” the company said.
KCM said it needed to import concentrates in order to meet smelter capacity and blending requirements.
The Chamber of Mines said last month mining companies may lay off over 21,000 workers due to reduced capital expenditure over the next three years due to the changes.