KCM suspends operations at Nchanga due to new tax

KCM suspends operations at Nchanga due to new tax

Konkola Copper Mines (KCM) has suspended operations at its Nchanga mine following the introduction of an import duty on copper concentrates, the company said.

Zambia, Africa’s No.2 copper producer, introduced new mining duties, increased royalties and plans to replace Value Added Tax (VAT) with a sales tax by April to help bring down mounting debt.

KCM said in a note to employees, seen by Reuters, that operations at the mine would be suspended from Jan. 4 due to low availability of acid as a result of rationalised operations at its Nchanga smelter.

Operations at the smelter were downsized due to low availability of concentrates after the government introduced an import duty on concentrates, KCM said.

“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.

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COMMENTS

WORDPRESS: 4
  • comment-avatar
    zebige 2 weeks ago

    wanyeka munzi

  • comment-avatar
    Lincoln 2 weeks ago

    THIS WERE LEADERSHIP IS NEEDED, NOT OPENING USELESS MALLS FOR MONEYLAUNDERING.

  • comment-avatar

    Mr president where are you and its just last week when you said the mines can’t lay off workers. Let’s see how big is the swip you carry, these mine owners needs you disciplining ability. You are quick to show us your muscles when its HH but now it involves our labour force and most needed to keep funding your flight ticket boss. Show us your strength bwana and we want you to hold a press conference to this regard not to hear from that idiot of a spokes electronic speaker soma ndacha.

  • comment-avatar

    Elo lwanya